Deninno Corporation Is Conducting a Time-Driven Activity-Based Costing Study in Its

question 41

Multiple Choice

Deninno Corporation is conducting a time-driven activity-based costing study in its Tech Support Department. The company has provided the following data to aid in that study: On the Capacity Analysis report in time-driven activity-based costing, the "impact on expenses of matching capacity with demand" would be closest to:

• A) ($151,200)
• B) ($189,000)
• C) ($113,400)
• D) ($186,698)

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Definitions:

Capacity Utilization Rate

A metric that measures the proportion of potential economic output that is actually realized.

Net Investment

The total spent on new capital assets (capital expenditure) minus depreciation. It reflects the increase in the value of an entity's assets.

Sales Outlook

An estimate or forecast of future sales performance of a company or industry over a specific period.

Corporation

A legal entity that is separate and distinct from its owners, which can own assets, incur liabilities, and sell shares.