By highlighting the cost of capacity available but not used,the management accountant directs attention to it and to the need for actions that can be taken to reduce it.

Question

Quizplus · Accepted Answer

By highlighting the cost of unused capacity, the management accountant draws attention to the need for actions that can be taken to reduce it, such as finding new customers or expanding current ones, improving production efficiency, or downsizing the operation. This is an effective way to encourage managers to focus on cost reduction and efficient resource utilization.

By Highlighting the Cost of Capacity Available but Not Used,the