A Difference Between Projected Demand and Current Capacity Is

question 17

Multiple Choice

A difference between projected demand and current capacity is

• A)Capacity cushion
• B)Capacity gap
• C)Capacity projection
• D)Required capacity
• E)Resources needed

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Definitions:

Inspection Costs

Expenses associated with the activity of checking and verifying the quality or specifications of goods or services.

Direct Labor-hour

A measure of the amount of time spent by workers directly involved in the production process to manufacture a product.

High-low Method

An approach in cost accounting to determine variable and fixed charges, based on analyzing the activity's minimum and maximum levels.

Job-Order Costing

A costing system used in situations where many different products, jobs, or services are produced each period.