The cost of wasted capacity is

A) the reduction in margin that results from having to go to a backup source.
B) the margin that would have been generated if the capacity had been used for production.
C) the productivity increase generated when the capacity is used for production.
D) the sales potential of excess capacity kept in reserve for emergency production.


Answer: B

Business

You might also like to view...

Which of the following statements is incorrect?

A. Capital budgeting focuses on short-term planning. B. Capital budgeting involves decisions as whether to buy or lease equipment. C. Cash outflows for capital budgeting will appear on the cash budget. D. Capital budgeting affects the master budget because it considers what assets a company should have and use when achieving its budgets.

Business

. Discuss different types of reflection and explain how the skill of reflection relates to the other entrepreneurial skills.

What will be an ideal response?

Business

Paralegals are bound by rules of confidentiality in dealing with clients of the law firm in which they work

a. True b. False

Business

When an employer is not within the exemption provision of Section 702 under Title VII, and the religion is not a BFOQ, the prohibition against discrimination on the basis of religion is:?

A) ?absolute B) ?obsolete. C) ?not absolute. D) ?unconditional.

Business