Which denominator-level concept results in the highest amount of fixed manufacturing overhead costs per unit of ending inventory when seasonal demand is low?
A)theoretical capacity
B)practical capacity
C)normal capacity
D)master-budget capacity
E)supply capacity

Question

Quizplus · Accepted Answer

Master-budget capacity is based on expected production levels, which can be lower during periods of low seasonal demand, leading to higher fixed manufacturing overhead costs per unit of ending inventory.

Which Denominator-Level Concept Results in the Highest Amount of Fixed