Practical capacity is used as the numerator for activity cost driver calculations to avoid distortions caused by the assignment of excess capacity costs to the products.
Correct Answer:
Verified
Q90: Under traditional costing systems,selling and administrative costs
Q91: Aggressive customers who demand low prices and
Q92: The major reason for using practical capacity
Q93: Advantages of a time-driven ABC system include:
A)data
Q94: Time-driven ABC enables the model to reflect
Q96: The Troubadours Company is noted for an
Q97: A time-driven ABC system:
A)is difficult to update.
B)is
Q98: Unused capacity should be treated as a
Q99: Determining realistic,practical capacity measurements is a(n):
A)fairly simple
Q100: A key reason for using an ABC
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents