Which of the Following Does Not Contribute to the Sustainability

question 95

Multiple Choice

Which of the following does not contribute to the sustainability of design capacity?

• A) scheduled machine maintenance
• B) overtime
• C) overstaffing
• D) using equipment to the maximum
• E) subcontracting

---

Definitions:

Ending Inventory

At the close of an accounting period, the value of products available for sale is calculated by taking the initial inventory, adding any purchases, and then deducting the cost of goods sold.

Cost Flow Assumption

An accounting method that determines the cost of goods sold and ending inventory valuation, examples include FIFO, LIFO, and weighted average.

LIFO

Last In, First Out, is an inventory valuation method assuming that goods purchased last are the first to be sold.

FIFO

First In, First Out, a method used in accounting to manage inventory and financial matters where the first items placed in inventory are the first sold or used.