Which of the Following Is an Advantage of Producing at Average

question 8

Multiple Choice

Which of the following is an advantage of producing at average demand levels?

• A) inventory fluctuates
• B) allows for a lower investment in capacity
• C) minimizes space needs for inventory
• D) minimizes finished good holding costs
• E) makes it difficult to calculate average production

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Definitions:

Persuade Customers

The process of convincing potential buyers to purchase a product or service through various techniques, including advertising, personal selling, and promotions.

Captured Value

The total value a company can capture from its product or service, often reflecting its competitive advantage.

Manufacturing Cost

The expenses directly associated with producing goods, including materials, labor, and overhead.

Human Resources

The department within an organization that is responsible for managing employee-related processes including recruitment, training, and benefits.