What Does Idle Production Capacity Refer To

question 62

Multiple Choice

What does idle production capacity refer to?

• A)a situation where the demand for exceeds the availability of service providers and as a result, no services can be offered
• B)when the supply of service providers exceeds the primary demand for the service
• C)a situation where a service provider is available but there is no demand for the service
• D)integrating the service component of the marketing mix with efforts to influence consumer demand
• E)the potential profits of one service provider serving multiple clients at the same time

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Definitions:

Equivalent Units

A concept used in cost accounting to express the amount of materials, labor, or overhead costs in terms of fully completed units of production.

Costs Per Equivalent Unit

The calculation of the cost to produce one standard unit of production, considering work done to date.

Process Costing

A costing method used in manufacturing where costs are assigned to batches or production runs, making it suitable for homogenous products.

Flour Mill

A facility where grains are ground to produce flour, an essential ingredient in many food products.