Computer-based systems, like ERP, help managers budget for all manufacturing costs but lack the ability to help managers budget for non-manufacturing costs

Which of the following would be a characteristic of a facility with little excess capacity?

A) Allows a facility to be very flexible and to respond to wide swings in the demands placed on it B) Costs money and therefore can decrease efficiency C) Requires proximity to customers and the rest of the network D) Will likely be more efficient per unit of product it produces

According to the text, which one of the following is NOT one of the reasons why innovations seem to occur more often in small firms rather than in large, established corporations?

A) An entrepreneur in a small firm is more willing to accept greater risk than would a larger firm of diversified ownership. B) Small firms are completely ignorant of risk management. C) The greater the assets involved and the longer they are tied up, the more likely top management in large firms is to demand a high probability of success. D) Companies operating in global industries must deal with a greater amount of risk than firms operating only in one country. E) If the corporation's stock is widely held as in the case of large firms and experiences stock price declines due to some external assessment, it places the firm in jeopardy of being acquired.