Which One of the Following Actions Applies to a Level

question 51

Multiple Choice

Which one of the following actions applies to a level strategy?

• A) Hire workers to increase production output to match increases in demand requirements.
• B) Build anticipation inventory to meet the variability in demand.
• C) Decrease production output to match any decreases in demand requirements.
• D) Use promotional campaigns to boost demand.

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Definitions:

Activity-based Costing

Activity-based costing is an accounting method that assigns costs to products based on the activities they require.

Overhead Cost

General expenses related to the day-to-day operations of a business that cannot be directly linked to a specific product or service.

Activity-based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing a more accurate allocation of costs to products.

Overhead Cost

Expenses related to the operation of a business that cannot be directly linked to a specific product or service.