Which One of the Following Statements About Capacity Cushion Is

Multiple Choice

Which one of the following statements about capacity cushion is best?

A) Return of investment is about the same for capital- intensive firms, regardless of their capacity cushions.
B) Large capacity cushions are more likely to be utilized when future demand is known.
C) Small cushions are used when the product mix often changes.
D) The best- sized cushion varies by industry and firm.