When significant differences exist between practical capacity and budgeted capacity utilisation,companies may:
A) use practical capacity for meaningful feedback to the marketing manager.
B) use budgeted capacity utilisation for setting selling prices.
C) classify the difference as planned unused capacity.
D) All of these answers are correct.
Correct Answer:
Verified
Q134: Although the Australian Taxation Office (ATO)requires that
Q136: Capacity costs also arise in non-production parts
Q137: The Australian Taxation Office (ATO)requires the use
Q138: Capacity costs:
A)don't provide a useful planning tool
Q140: What is the effect of spreading fixed
Q141: How does using budgeted capacity utilisation for
Q142: Challenges only result from estimating the denominator
Q144: Budgeted capacity utilisation can be more reliably
Q161: Theoretical capacity is most often used to
Q189: The higher the denominator level the higher
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