In planning service capacity, firms have to manage the trade-off between ______.
A. lost customers and higher costs from maintaining a capacity cushion
B. lost customers and higher costs from operating at economies of scale
C. lost customers and higher costs from operating at diseconomies of scale
D. lost customers and higher costs from attracting new customers
A. lost customers and higher costs from maintaining a capacity cushion
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The unfavorable volume variance may be due to all but the following factors:
A) failure to maintain an even flow of work B) machine breakdowns C) unexpected increases in the cost of utilities D) failure to obtain enough sales orders
Variable costing is
A) a good way to value inventories for the balance sheet. B) used for external reporting purposes. C) not useful for companies with multiple segments. D) a useful tool for management decision making. E) can only be used by start-up companies.
Which of the following formulas can often reconcile the difference between absorption- and variable-costing income?
A. (Absorption-costing income ? variable-costing income) × fixed-overhead rate per unit. B. Change in inventory units ÷ predetermined fixed-overhead rate per unit. C. Change in inventory units ÷ predetermined variable-overhead rate per unit. D. Change in inventory units × predetermined fixed-overhead rate per unit. E. Change in inventory units × predetermined variable-overhead rate per unit.
Under the United States legal system, you are guilty until proven innocent
Indicate whether the statement is true or false