BUS 370 Chapter Notes - Chapter 8: Variable Cost, Unnecessary Health Care, Public Storage

• School: NCSU
• Department: Business Management
• Course: BUS 370
• Professor: Tracy A Freeman

Document Summary

The capability of a worker, machine, work center, plant or organization to produce output per time period. Jiffy lube ==> oil changes per hour. Companies generally measure capacity in terms of inputs, outputs or a combination of the 2. Organizations that provide standard products or services tend to measure capacity in terms of outputs b/c output doesn"t change radically from one period to the next. Organizations that provide customized services or products tend to measure capacity in terms of inputs. Managing partners in a consulting firm are more likely to think in terms of available consultant hours (inputs) than of projects completed over a certain period (outputs) Law firm: number of lawyers/paralegals, education and skill level, supporting software. Textile-spinning plant: number of machines running, quality of raw materials, maintenance. # of temp workers, # of public storage facilities, product variations, conformance quality. Firm"s ability to use its own capacity is often directly dependent on.