Managers face uncertainty when estimating:
A)demand of the product
B)the denominator level for practical capacity
C)total fixed manufacturing costs for the next accounting period
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

Managers face uncertainty in all of these areas when estimating. Demand for the product can vary due to changes in the market, competition, or customer preferences. The denominator level for practical capacity is difficult to estimate because it depends on factors such as equipment availability, labor availability, and order sizes. Total fixed manufacturing costs can be uncertain due to changes in overhead costs, such as rent, utilities, and insurance.

Managers Face Uncertainty When Estimating