Which of the Following Is Consistent with a Chase Strategy

question 109

Multiple Choice

Which of the following is consistent with a chase strategy?

• A)vary production levels to meet demand requirements
• B)vary work force to meet demand requirements
• C)vary production levels and work force to meet demand requirements
• D)little or no use of inventory to meet demand requirements
• E)All of the above are consistent with a chase strategy.

---

Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales volumes, remaining constant regardless of the company's activity levels.

Margin Of Safety

The difference between actual sales and the break-even point. It measures how much sales can fall before a business incurs a loss.

Variable Costs

Expenditures that adjust based on the degree of operational activity or the volume of goods manufactured.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales activities.