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When Significant Differences Exist Between Practical Capacity and Budgeted Capacity

Question 139

Multiple Choice

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:

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