For flexible resources, which of the following statements is true?
A)A change in resource spending will only occur if the demand for a resource drops permanently and exceeds demand enough so the activity capacity will be reduced.
B)Often, resources are acquired in advance for multiple periods and are therefore irrelevant.
C)Decisions often affect multi-period capabilities.
D)If the demand for an activity changes across alternatives, then resource spending will change and the cost of the activity will be relevant to the decision.

Question

Quizplus · Accepted Answer

If the demand for an activity changes across alternatives, then resource spending will change, making the cost of the activity relevant to the decision. This means that flexible resources can play a significant role in decision-making and their costs should be considered in the analysis. Option A is not true since a change in resource spending can occur due to various reasons, not just a drop in demand. Option B is not true since resources acquired in advance can also be flexible and can be adjusted to meet changing demand. Option C is partially true but not specific to flexible resources as decisions can affect capabilities in both single and multi-period scenarios.

For Flexible Resources, Which of the Following Statements Is True