Final answer:
Volume flexibility involves accelerating or decelerating the rate of production of services or products to handle large fluctuations in demand.
Step-by-step explanation:
Volume flexibility involves accelerating or decelerating the rate of production of services or products to handle large fluctuations in demand. This means that a company can quickly increase or decrease its production level in response to changes in customer demand. For example, a restaurant may hire additional staff and increase the quantity of ingredients ordered during busy periods, such as holidays or weekends, to meet the higher demand for their services.
On the other hand, during slower periods, the restaurant may reduce the number of staff and adjust their ingredient orders to avoid waste and excessive costs.
Therefore, the statement is true. Volume flexibility allows businesses to adapt their production levels to fluctuating demand, ensuring efficient operations and customer satisfaction.