Which of the Following Is FALSE Regarding Capacity Expansion

question 8

Multiple Choice

Which of the following is FALSE regarding capacity expansion?

• A) "Average" capacity sometimes leads demand, sometimes lags it.
• B) If "lagging" capacity is chosen, excess demand can be met with overtime or subcontracting.
• C) Total cost comparisons are a rather direct method of comparing capacity alternatives.
• D) Capacity may only be added in large chunks.
• E) In manufacturing, excess capacity can be used to do more setups, shorten production runs, and drive down inventory costs.

Analyze real-world problems involving direct and indirect financial calculations.

Apply percentage calculations to determine costs, savings, and benefits in various contexts.

Understand basic algebraic functions to represent and solve business-related problems.

Calculate earnings, including understanding how salary adjustments affect personal budgets.

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Definitions:

Robert Mugabe

A Zimbabwean revolutionary and politician who served as Prime Minister from 1980 to 1987 and then as President from 1987 to 2017.

Henry Ford

An American industrialist and founder of the Ford Motor Company, who revolutionized factory production with his assembly-line methods.

Max Ringelmann

A French agricultural engineer who discovered the Ringelmann effect, noting that individual productivity decreases as the size of a group increases.

Highly Assertive

Characterized by confident and forceful behavior or attitudes, especially in stating one's opinions or claiming one's rights.