Asked by Daniel Amoako on Jun 15, 2024
Verified
A firm with most of its assets invested in manufacturing facilities has considerable operating flexibility.
Operating Flexibility
The degree to which a company can adjust its operations and costs in response to changes in the business environment.
Manufacturing Facilities
Physical locations where products are produced or manufactured, including plants and factories.
- Recognize the business operational processes, encompassing the cycles of production and cash collection.
Verified Answer
JG
Jeimmy GarridoJun 19, 2024
Final Answer :
False
Explanation :
A firm with most of its assets invested in manufacturing facilities has considerable operating rigidity due to the high fixed costs associated with these assets, limiting its ability to quickly adjust to changes in demand or market conditions.
Learning Objectives
- Recognize the business operational processes, encompassing the cycles of production and cash collection.