In time-based activity-based costing, the practical capacity percentage is an estimate of the company's capacity in relation to its closest competitor.

Name: In time-based activity-based costing, the practical capacity percentage is an estimate of the company's capacity in relation to its closest competitor.
Brand: Quizplus
Rating: 4.8 (37 reviews)

Question

Quizplus · Accepted Answer

The practical capacity percentage in time-based activity-based costing is an estimate of a company's actual capacity to perform activities, not in relation to a competitor.

In Time-Based Activity-Based Costing, the Practical Capacity Percentage Is an Estimate