The Major Reason for Using Practical Capacity as the Denominator

question 79

Multiple Choice

The major reason for using practical capacity as the denominator for activity driver calculations is to:

• A)avoid distortions induced by the assignment of unused capacity costs to the products produced or customer served.
• B)simplify the calculations of the activity cost drivers.
• C)reduce the cost of unused capacity.
• D)place less emphasis on the cost of unused capacity.

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Definitions:

Physical Features

The characteristics of an object or organism's body, such as shape, size, and color, visible and measurable.

Mutation

a change in the DNA sequence within an organism's gene or chromosome, leading to the creation of a new trait not found in the parental type.

DNA Replication

DNA replication is the biological process of producing two identical replicas of DNA from one original DNA molecule, a critical step before cell division.

Genetic Diversity

The total number of genetic characteristics in the genetic makeup of a species, enabling it to adapt to changing environments.