Chapter S7 Homework/Quiz

3 September 2022
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question
Efficiency is given by
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actual output / effective capactiy
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The difference between selling price and variable cost is called
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contribution
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Which of the following approaches makes new capacity a larger increase at the beginning of the period?
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leading demand with a one-step expansion
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In manugacturing, excess capacity can be used to
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do more setupsm shorten production runs, and drive down inventory costs
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Which of the following is a requirement to be able to compute expected monetary value?
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the probability of each state of nature is known
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What is a means of determining the discounted value of a series of future cash receipts?
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net present value
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What does EMV stand for?
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expected monetary value
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What is a means of finding the point, in dollars and units, at which costs equal revenues?
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break-even analysis
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The most aggressive and risky approach to capactity planning is
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leading demand with one-step expansion
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An investment that generates a series of uniform and equal cash amounts is referred as
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an annuity
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Which of the following is a possible option to employ when demand exceeds capacity?
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schedule long lead times