Which of the Following Represents a Common Way to Manage

question 116

Multiple Choice

Which of the following represents a common way to manage capacity in the service sector?

• A) appointments
• B) reservations
• C) changes in staffing levels
• D) first-come, first-served service rule
• E) "early bird" specials in restaurants

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Definitions:

Annual Fixed Cost

The total of all business expenses that remain constant regardless of any change in production levels or sales volume over a year.

Total Output

The aggregate quantity of goods or services produced by an economy, sector, or production process over a specific period.

Barbershop

A place of business where people, typically men, go to get haircuts and often beard trims or shaves.

Average Total Cost

The total cost of production divided by the quantity produced, including both fixed and variable costs, representing the per unit cost of production.