Answer the Following Question(s)using the Information Below

question 167

Multiple Choice

Answer the following question(s) using the information below.A manufacturing firm is able to produce 1,000 pairs of shoes per hour, at maximum efficiency.There are three eight-hour shifts each day.Due to unavoidable operating interruptions, production averages 800 units per hour.In the month of June the plant actually operated only 25 days due to avoidable shut downs.
-From the perspective of long-run product costing it is best to use

• A)master-budget capacity utilization to highlight unused capacity.
• B)normal capacity utilization for benchmarking purposes.
• C)practical capacity for pricing decisions.
• D)theoretical capacity for performance evaluation.
• E)supply capacity to satisfy customer demand.

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Definitions:

Interest Rate

The percentage of a loan amount charged for borrowing money or paid for invested funds.