Capacity Management Is Defined as

question 24

Multiple Choice

Capacity management is defined as

• A) a tactical activity in the present moment
• B) primarily focused on the intelligent utilization of capacity
• C) use of short-term actions to increase capacity scalability and flexibility to meet current demand
• D) all of the above

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Definitions:

Underapplied

A situation where the allocated or applied costs are less than the actual costs incurred.

Fixed Overhead Budget Variance

The difference between the actual fixed overhead costs incurred and the budgeted or expected costs.

Unfavorable

A term used in variance analysis to describe a situation where actual results are worse than expected results, leading to a negative impact on financial performance.

Favorable

A term used in finance and accounting to describe results that are better than expected or budgeted.