An Advantage of Using a Practical Capacity-Based Allocation Rate Is

question 16

Multiple Choice

An advantage of using a practical capacity-based allocation rate is:

• A)It does not change across products.
• B)It spreads all capacity costs over budgeted, rather than actual, volume.
• C)When there is idle capacity, capacity costs are spread over a smaller production volume.
• D)It does not change across periods.
• E)All of the above are advantages of using a practical capacity-based allocation rate.

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Definitions:

Growth Spurt

A rapid period of physical growth, often experienced during puberty, in which the body grows in height and changes in composition.

Shirt

A piece of clothing worn on the upper body, typically with sleeves and a collar, and used for casual or formal occasions.

Pants

A piece of clothing for the lower body from waist to ankles, covering each leg separately.

Belt

A flexible band or strap, typically made of leather or cloth and worn around the waist, to support or hold in clothing, carry weapons, or serve as a fashion item.