If Forecast Demand Exceeds the Total Factory or Supply Capacity

question 4

Multiple Choice

If forecast demand exceeds the total factory or supply capacity, managers might simply decide not to meet forecast demand.This decision would most likely be made at which planning level?

• A)Aggregate planning - Level 1
• B)Disaggregation - Level 2
• C)Execution - Level 3
• D)Capacity requirements planning

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Definitions:

Generally Accepted Auditing Standards

Principles that provide a framework for auditors to conduct financial audits, ensuring accuracy, consistency, and verifiability.

Negligence

A failure to exercise the care that a reasonably prudent person would exercise in similar circumstances, leading to harm or damage.

Actual Fraud

Refers to intentional deception made for personal gain or to damage another individual.

Material Fact

An important fact that if known might influence a decision maker’s decision, such as in a contract negotiation or in the dissemination of information to investors.