One Option for Altering the Pattern of Demand Through Aggregate

question 19

Multiple Choice

One option for altering the pattern of demand through aggregate planning is:

• A)Hiring employees
• B)Using overtime
• C)Carrying inventory
• D)Subcontracting
• E)Pricing

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Definitions:

Flexible Budget

A budget that adjusts or varies with changes in volume or activity levels.

Overhead Costs

Costs that are not directly related to the creation of products or services, including rent, utilities, and salaries for administrative staff.

Production Capacity

The maximum output that a manufacturing or production facility can achieve within a given period under normal working conditions.

Volume Variance

Refers to the difference between the actual volume of output and the budgeted or expected volume, impacting costs and revenues.