Using master-budget capacity to allocate budgeted fixed manufacturing costs can result in a
A) stable measure; avoiding the recalculation of unit costs when expected demand levels change
B) fixed costs spread over available capacity
C) can result in a downward demand spiral
D) in fixed overhead costs calculated based on capacity available

Question

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The Answer of Using master-budget capacity to allocate budgeted fixed manufacturing costs can result in a
A) stable measure; avoiding the recalculation of unit costs when expected demand levels change
B) fixed costs spread over available capacity
C) can result in a downward demand spiral
D) in fixed overhead costs calculated based on capacity available

Using Master-Budget Capacity to Allocate Budgeted Fixed Manufacturing Costs Can