The master-budget capacity utilization, rather than normal capacity utilization or practical capacity, is what
should be used for evaluating a marketing manager's performance in the current year.

Question

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The master budget, which includes all planned activities and targets for the year, should be used as the benchmark for evaluating a marketing manager's performance. This includes using the master-budget capacity utilization, which takes into account all planned production or service levels for the year, rather than just normal or practical capacity.

The Master-Budget Capacity Utilization, Rather Than Normal Capacity Utilization or Practical