Which of the following statements regarding aggregate planning in services is FALSE?
A) Approaches to aggregate planning differ by the type of service provided.
B) Some service organizations conduct aggregate planning in exactly the same way as manufacturing firms, but with demand management taking a more active role.
C) Aggregate planning in some service industries may be easier than in manufacturing.
D) Labor is the primary aggregate planning vehicle.
E) Level scheduling is far more common than using a chase strategy.
E
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Investment spending on physical capital is about ____ of aggregate demand.
A. 1/10 B. 1/6 C. 1/4 D. 1/2
Nile Food's stock has a beta of 1.4, while Elba Eateries' stock has a beta of 0.7. Assume that the risk-free rate, rRF, is 5.5% and the market risk premium, (rM - rRF), equals 4%. Which of the following statements is CORRECT?
A. If the risk-free rate increases but the market risk premium remains unchanged, the required return will increase for both stocks but the increase will be larger for Nile since it has a higher beta. B. If the market risk premium increases but the risk-free rate remains unchanged, Nile's required return will increase because it has a beta greater than 1.0 but Elba's required return will decline because it has a beta less than 1.0. C. Since Nile's beta is twice that of Elba's, its required rate of return will also be twice that of Elba's. D. If the risk-free rate increases while the market risk premium remains constant, then the required return on an average stock will increase. E. If the market risk premium decreases but the risk-free rate remains unchanged, Nile's required return will decrease because it has a beta greater than 1.0 and Elba's will also decrease, but by more than Nile's because it has a beta less than 1.0.
In Six Sigma, the goal of quality perfection is represented by having a process sample average that falls below a control limit that is placed how far above the true process mean?
a. Three standard deviations b. One standard deviation c. Six standard deviations d. Four standard deviations
The decrease in value from the original cost of a long-term asset over its useful life is known is depreciation.?
Indicate whether the statement is true or false