In a Capacity Analysis report in time-based activity-based costing, the impact on expenses of matching capacity with demand is computed by multiplying the potential adjustment in the number of employees by the average salary per employee.

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This statement is true. The Capacity Analysis report in time-based activity-based costing helps in determining the impact on expenses by matching capacity with demand, and one of the ways to compute this impact is by multiplying the potential adjustment in the number of employees by the average salary per employee.

In a Capacity Analysis Report in Time-Based Activity-Based Costing, the Impact