Which one of the following statements concerning capacity cushions is best?
A) Large-capacity cushions are utilized 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

Small-capacity cushions are used extensively in capital-intensive firms because these firms aim to maximize the utilization of their expensive resources and equipment, minimizing idle time and excess capacity.

Which One of the Following Statements Concerning Capacity Cushions Is