Which of the following is true of unused capacity?
A) It is a definite sign of wasted resources.
B) It is intended for future use.
C) It is not possible to reduce or eliminate unused capacity costs.
D) It does not provide capacity for potential demand surges.

Question

Quizplus · Accepted Answer

Unused capacity is capacity that is not currently being utilized, but is available for future use. It is intentionally created to accommodate future demand growth or unexpected surges in demand. Therefore, option B is the correct answer. Option A is incorrect because unused capacity is not necessarily a sign of wasted resources; it is a strategic decision. Option C is incorrect because unused capacity costs can often be reduced or eliminated through effective capacity planning. Option D is incorrect because unused capacity does provide capacity for potential demand surges.

Which of the Following Is True of Unused Capacity