Which one of the following statements concerning capacity cushions is BEST?
A)Large capacity cushions are used more often when future demand is level and known.
B)Small capacity cushions are used extensively in capital intensive firms.
C)Capacity cushions are used primarily in manufacturing organizations,not in service organizations.
D)Small cushions are used in organizations where the products and services produced often change.

Question

Quizplus · Accepted Answer

Capital intensive firms often use small capacity cushions to maximize efficiency and reduce costs, as their high fixed costs make it important to operate close to full capacity.

Which One of the Following Statements Concerning Capacity Cushions Is