________ Is a Capacity Option That Works Especially Well in the Service

question 76

Short Answer

________ is a capacity option that works especially well in the service sector where labor needs are relatively unskilled.

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Definitions:

Net Operating Income

The income yielded by a company's primary activities, not including costs or earnings from activities outside its main operations.

Variable Costing

A costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product cost.

Operating Results

The outcome of a company's core business activities, including revenue generation and expenses, over a specific period.

Fixed Cost

Costs that do not vary with the level of production or sales, remaining constant within a specific range of activity.