Asked by Siyali Singhaniya on Jun 30, 2024
Verified
Which of the following may result in failure to utilise the freed up resources flowing from improved performance?
A) Difficulty in disposing of excess equipment
B) Inability to increase sales to take up the idle capacity
C) Imbalance between resources made idle and those required for increasing activity levels
D) All of the given answers
Idle Capacity
Unused or underutilized production or operational capacity within a business, often resulting in inefficiency and increased costs.
Excess Equipment
Unused or surplus machinery and tools that exceed the current production needs of a company.
Sales Increase
A rise in the volume or value of products or services sold by a business over a specific period.
- Understand the selection and impact of performance measures on organizational strategy and operations.
Verified Answer
SP
Surabhi PatelJul 02, 2024
Final Answer :
D
Explanation :
All of the given answers may result in failure to utilise the freed up resources flowing from improved performance. Difficulty in disposing of excess equipment may lead to storage costs, while inability to increase sales to take up idle capacity may result in decreased profitability. Imbalance between resources made idle and those required for increasing activity levels may lead to underutilization of resources and decreased efficiency.
Learning Objectives
- Understand the selection and impact of performance measures on organizational strategy and operations.
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