Which of the Following Is NOT True About Aggregate Planning

question 20

Multiple Choice

Which of the following is NOT true about aggregate planning in service organizations?

• A)A time horizon of 12 months,on average,is used
• B)The possibility of changing both supply and demand variables
• C)A variety of management objectives
• D)Requires inventory and capacity tradeoff
• E)Facilities are fixed

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Definitions:

Cost Method

An accounting method used to record investments where the investment is recorded at cost and is not adjusted for increases or decreases in the value of the underlying asset, except to reflect impairments.

Additional Paid-in Capital

The excess amount paid by investors over and above the par value of the shares during the issuance of stock.

Donated Treasury Stock

Shares that were once repurchased by the issuing company and are later donated to a beneficiary.

Cost Method

An accounting technique used to value inventory, usually at the lower of cost or market price, and investments in certain conditions.