slack

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December 4, 2017 at 11:10 am #420119
adarsh1997
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The management accountant has calculated that the slack for material is 500 kg per week.

What does a slack of 500 kg per week for material x represent?

A. The quantity of material x that is available each week.
B. The excess of material x available over production needs.

1. The answer is B
2. Could you explain why what’s wrong with A?
December 4, 2017 at 3:16 pm #420238
John Moffat
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The material available is the total available. They will be using some of it for production – the slack is the amount that is available but that they are not using.
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