An approach which is used to manage unused capacity is __________?

Correct answer: B. downsizing

  • A. reengineering
  • B. downsizing
  • C. upgrading
  • D. none of above

Explanation

Downsizing reduces the organization’s workforce or operating scale and can therefore align resources with lower demand and unused capacity. Reengineering changes processes, while upgrading generally expands or improves capacity rather than removing excess capacity.

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Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.

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