Shifting Demand Makes Sense When the Company Has ______________________

question 12

Multiple Choice

Shifting demand makes sense when the company has ______________________.

• A) lots of space for inventory
• B) low inventory carrying costs
• C) equipment that is highly flexible with respect to production volume changes
• D) high fixed costs and low variable costs
• E) excess capacity

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Definitions:

Accounts Receivable

Represents the money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Nonsufficient Funds

Nonsufficient funds (NSF) is a term used in banking to indicate that a demand for payment cannot be honored because there are inadequate funds in the account on which the instrument was drawn.

Accounts Receivable

Accounts receivable is the money owed to a business by its clients or customers for goods or services delivered but not yet paid for.