Which of the following is the budgeted fixed manufacturing cost rate the lowest for?
A)Theoretical capacity
B)Practical capacity
C)Budgeted capacity utilisation
D)Normal capacity utilisation

Question

Quizplus · Accepted Answer

Theoretical capacity is the maximum amount of output that can be produced with no interruptions or downtime, which means it assumes full production potential. Therefore, the budgeted fixed manufacturing cost rate for theoretical capacity would be the lowest compared to practical, budgeted, or normal capacity utilisation, as those factors consider more realistic production variables and potential downtime.

Which of the Following Is the Budgeted Fixed Manufacturing Cost