If a Firm Has Excess Capacity, Which of the Following

question 94

Multiple Choice

If a firm has excess capacity, which of the following is a sensible bidding strategy?

• A) Set a price to cover all costs.
• B) Base the bid on the incremental costs incurred because the job will contribute toward covering the company's fixed costs and profit.
• C) Base the bid solely on direct labour hours.
• D) Common fixed costs must be allocated to individual jobs before preparing the bid.

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Definitions:

Peripheral Edema

Swelling in the limbs due to the accumulation of fluid, often related to heart failure, liver disease, or kidney problems.

Cardiopulmonary Resuscitation

An emergency life-saving procedure performed when the heart stops beating, involving chest compressions combined with artificial ventilation.

A-C-B Approach

A problem-solving strategy that involves analyzing the Antecedent, Behavior, and Consequence to change undesirable behaviors.

Ileal Conduit

Most commonly used urinary diversion procedure.