For the next six months, Kurtz Company projects the following information (in units).

Demand drives production for that month and cannot be carried over from one month to another. Retail customers are satisfied first.
-Painting capacity appears to be:
A)short-term capacity.
B)intermediate-term capacity.
C)long-term capacity.
D)total demand.

Question

For the next six months, Kurtz Company projects the following information (in units).
  
Demand drives production for that month and cannot be carried over from one month to another. Retail customers are satisfied first.
-Painting capacity appears to be:
A)short-term capacity. 
B)intermediate-term capacity. 
C)long-term capacity. 
D)total demand.

Quizplus · Accepted Answer

Intermediate-term capacity refers to the capacity that can be adjusted in the medium term (usually one year to three years) to meet changing demand patterns. Painting capacity is not something that can be easily adjusted in the short term, but it is also not a permanent long-term capacity. Therefore, it falls into the category of intermediate-term capacity.

For the Next Six Months, Kurtz Company Projects the Following