The cost of a capacity shortage 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: A
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Astrid, a customer service representative with NorthTel Wireless Services, was asked by one of her customers if NorthTel would be interested in joining the chamber of commerce to meet potential customers and increase its contacts in the local business community. Astrid believes this is a very good idea and approached her manager, DeShawn, about becoming a chamber member. DeShawn said to Astrid, "Because the cost of membership is over $500 and you will have to leave the office to attend meetings, I will have to get approval from management above me." NorthTel is an example of an organization with
A. decentralized authority. B. unity of command. C. work specialization. D. centralized authority. E. line managers.
The term that applies to the situation in which employees are terminated or empty positions are left unfilled once someone leaves an organization is ________.
A. downsizing B. outsourcing C. offshoring D. networking
In which of the following customer relationship groups do organizations generally avoid investing?
A) barnacles B) strangers C) butterflies D) true believers E) true friends
A credit entry:
A. Always increases an account. B. Increases asset and expense accounts, and decreases liability, common stock, and revenue accounts. C. Always decreases an account. D. Is recorded on the left side of a T-account. E. Decreases asset and expense accounts, and increases liability, common stock, and revenue accounts.