Which One of the Following Statements Concerning Aggregate Planning Alternatives

question 67

Multiple Choice

Which one of the following statements concerning aggregate planning alternatives is best?

• A) Building anticipation inventory during the slack season is a demand alternative a firm can follow to satisfy seasonal demand patterns.
• B) Adjusting workforce levels is an attractive capacity alternative when the cost of training and unemployment compensation is high.
• C) Creating anticipation inventory has the advantage of increasing customization.
• D) Using overtime is an undesirable option when the overtime wage premium is high and sustained levels of top worker productivity are important.

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Definitions:

Store Equipment

The fixtures, machinery, and tools used in the operation of a retail store, often categorized as fixed assets on the balance sheet.

Book Value

The value of an asset according to its balance sheet account balance. For assets, the value is based on the original cost of the asset less any depreciation, amortization, or impairment costs made against the asset.

Unearned Ticket Revenue

Unearned ticket revenue is money received from ticket sales before the event or service has been provided, considered a liability until the service is rendered.

Season Tickets

Tickets sold for a set of events, usually for a sports season, concerts, or theatre productions, allowing the holder to attend all events in the series.