Which of the Following Questions Are Concerned with Capacity Utilization

question 188

Multiple Choice

Which of the following questions are concerned with capacity utilization decisions that must be made by operations management?

• A) How many automobiles do we produce?
• B) How much floor space do we devote to a particular product?
• C) How many tables does my restaurant need?
• D) How much office space does the accounting operation need?
• E) All of these choices

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Definitions:

Economicbenefits

The potential to bring about advantages in terms of increased cash flows or reduced cash outflows, contributing to the value of an entity.

Bank Guarantee

A financial instrument provided by a bank on behalf of a client, ensuring payment to a beneficiary if the client fails to fulfill contractual obligations.

Contingent Liability

A potential financial obligation that may arise in the future, dependent on the occurrence of certain events.

Liability

An obligation arising from past transactions or events, which may result in an outflow of resources embodying economic benefits.