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A Service Organization May Chase Demand with Capacity by Stretching

question 52

True/False

A service organization may chase demand with capacity by stretching or shrinking its productive capacity to meet fluctuating demand.


Definitions:

Functional Currency

The currency of the primary economic environment in which an entity operates, used for reporting financial results.

Foreign Operation

A business or branch of a company that operates in a country different from the country where the company is headquartered.

Local Operations

Business activities carried out within a company's domestic geographical area.

Functional Currency

The primary currency of the primary economic environment in which an entity operates and carries out its transactions.

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