Benzene is a colorless, aromatic liquid used in manufacturing a variety of products including motor fuels, solvents, detergents, pesticides, and other organic materials. Benzene is a toxic substance and rapid inhalation can be fatal. Exposure has also

been shown to lead to various types of nonmalignant diseases such as blood disorders (including leukemia). ? OSHA passed a regulation limiting maximum benzene exposure for employees. OSHA set a 1 ppm maximum, even though the medical evidence only discussed exposures at 10 ppm and more. The petroleum industry wishes to challenge the regulation. Can they do so? On what basis?


First, they must have voiced their concerns during the promulgation. Second, they can challenge the regulation in court by establishing that it is arbitrary and capricious or not supported by substantial evidence. An ultra vires challenge is inappropriate since OSHA can clearly regulate industrial hazards. However, the regulation is much more stringent than the level of exposure required for the documented medical effects. See Industrial Union v. American Petroleum, 448 U.S. 607 (1980).

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______ focuses on the use of mathematics to aid in problem solving.

a. Management science theory b. Management information system c. Integrative theory d. Systems theory

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

1. Capacity planning for the medium time range is called capacity requirements planning. 2. Finished products inventory planning is one of the activities included under capacity planning. 3. Inventory levels is a key input to a CRP system. 4. A consequence of lot splitting is that it reduces the unit cost of production.

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From this analysis, what strategic actions would you recommend to Cirque?

What will be an ideal response?

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The manufacturing overhead variance that is a measure of capacity utilization is:

A. the overhead rate variance. B. the overhead budget variance. C. the overhead efficiency variance. D. the overhead volume variance.

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