When Large Differences Exist Between Practical Capacity and Master-Budget Capacity

question 163

Multiple Choice

When large differences exist between practical capacity and master-budget capacity utilization, companies may:

• A)classify the difference as planned unused capacity
• B)use master-budget capacity utilization for setting selling prices
• C)use practical capacity for meaningful feedback to the marketing manager
• D)All of these answers are correct.

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Definitions:

Variable-ratio Schedule

A schedule of reinforcement where a response is reinforced after an unpredictable number of responses, leading to a high and steady rate of response.

Reinforcement

In behavioral psychology, a procedure or consequence that strengthens a behavior, making it more likely to occur again in the future.

Responses

Reactions or actions of an organism or system to stimuli or changes in the environment.

Reinforced Schedule

A plan or strategy in operant conditioning that outlines how and when reinforcement (rewards or punishments) will be given for certain behaviors.