Normal capacity utilization:
A)represents real capacity available to the company
B)can result in setting selling prices that are not competitive
C)when used for product costing results in the lowest cost estimate of the four capacity options
D)represents the maximum units of production intended for current capacity

Question

Quizplus · Accepted Answer

Normal capacity utilization can lead to setting selling prices that are not competitive because it may not reflect the actual demand or market conditions, potentially resulting in overpricing.

Normal Capacity Utilization