Capacity Planning Is Complicated by the Fact That ___________________

question 126

Multiple Choice

Capacity planning is complicated by the fact that ___________________.

• A) capital markets are complex
• B) existing facilities may become obsolete
• C) capacity is difficult to define
• D) capacity is usually purchased in chunks, rather than smooth increments
• E) depreciation must be calculated

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Definitions:

Cash Disbursements

The total amount of money that a company pays out in cash during a specific period.

Accounts Receivable Balance

The sum of money that customers owe to a business for products or services they have received but have not yet paid for.

Quarterly Sales

The total revenue generated by a business during a specific quarter of the fiscal year.

Receivable Factoring

A financial transaction where a business sells its accounts receivable (invoices) to a third party (factor) at a discount, in order to obtain immediate cash.