Which of the Following Is True of Master-Budget Capacity Utilization

question 94

Multiple Choice

Which of the following is true of master-budget capacity utilization?

• A) It hides the amount of unused capacity.
• B) It represents the maximum units of production intended for current capacity.
• C) It provides the best cost estimate for benchmarking purposes.
• D) It is an average that provides no meaningful feedback to a firm's marketing manager for a particular year.

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Definitions:

Decreases

A reduction in size, quantity, or degree.

Punishment

A consequence imposed for breaking a rule or law, intended to discourage the behavior.

Operant Responding

A technique of teaching that involves giving rewards for good behavior and punishments for bad behavior.

Negative Punishment

Removing a desirable stimulus to decrease the likelihood of a behavior being repeated.