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1) Indicate whether the statement is true or false. Capacity is the maximum rate

ID: 415580 • Letter: 1

Question

1) Indicate whether the statement is true or false. Capacity is the maximum rate of output of a process service or good can be reduced by increasing its output rate. equal limits an organization's ability to achieve its goals. in a period of time. i. ii Diseconomies of scale is a concept that states that the average unit cost ofa i. Break-even analysis identifies the volume at which fixed costs and revenue are iv. The theory of constraints is a body of knowledge that deals with anything that v. Utilization is the number of units a facility can hold, receive, store, or produce

Explanation / Answer

1) True: Maximum amount which can be produced is called capacity of the company or process.
2) False: This is actually the definition of economics of scale. Diseconomics of scale increases cost instead.
3) False: At BEP, total cost = Total revenue not just fixed cost.
4)True: It identifies the constraints and methods to deal with them
5) False: Utilization is instead how effectively a particular entity is used.

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