Answer the following statements true (T) or false (F)

1. Service capacity is influenced by the total market size.
2. Inventory stock-out is a result of inadequate capacity in offering services.
3. The impact of inventory stock-outs is required in determining the service level requirements.
4. To determine processing requirements or workloads of each department, service charge is required.


1. False
2. False
3. False
4. False

Business

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The firm's cost of external equity capital is the same as the required rate of return on the firm's outstanding common stock.

Answer the following statement true (T) or false (F)

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A professor's graduate assistant can grade a quiz in 40 seconds. Over the course of an academic year he assists with 6 sections of a course with an average of 30 students with 10 quizzes in each section

If he is paid $8 an hour, how much is his annual quiz-grading labor cost to the university? A) $60 B) $160 C) $576 D) $576,000

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