The Capacity Level Which Assumes Continuous, Uninterrupted Production 365 Days

question 36

Multiple Choice

The capacity level which assumes continuous, uninterrupted production 365 days per year is called

• A) Budgeted capacity
• B) Normal capacity
• C) Practical capacity
• D) Theoretical capacity

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Definitions:

Cost of Goods Sold

The expenses directly tied to the manufacture of products sold by a business, encompassing both materials and wages.

Finished Goods Inventory

Finished goods inventory refers to the stock of completed products ready for sale at the end of an accounting period.

Cost of Goods Manufactured

The total production cost of goods that are completed during a specific period.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including material and labor costs.