Which of the following is true of normal capacity utilization?
A) It will be less than the real capacity available to a company.
B) It can result in setting selling prices that are not competitive.
C) It results in the lowest cost estimate of the four capacity options when used for product costing.
D) It represents the maximum units of production intended for current capacity.

Question

Quizplus · Accepted Answer

The Answer of Which of the following is true of normal capacity utilization?
A) It will be less than the real capacity available to a company.
B) It can result in setting selling prices that are not competitive.
C) It results in the lowest cost estimate of the four capacity options when used for product costing.
D) It represents the maximum units of production intended for current capacity.

Which of the Following Is True of Normal Capacity Utilization