The cost of a capacity shortage is
A)the reduction in margin that results from having to go to a backup source.
B)the margin that would have been generated if the capacity had been used for production.
C)the productivity increase generated when the capacity is used for production.
D)the sales potential of excess capacity kept in reserve for emergency production.

Question

Quizplus · Accepted Answer

The Answer of The cost of a capacity shortage is
A)the reduction in margin that results from having to go to a backup source.
B)the margin that would have been generated if the capacity had been used for production.
C)the productivity increase generated when the capacity is used for production.
D)the sales potential of excess capacity kept in reserve for emergency production.

The Cost of a Capacity Shortage Is