Budgeted Fixed Manufacturing Costs of a Product Using Practical Capacity

question 43

Multiple Choice

Budgeted fixed manufacturing costs of a product using practical capacity:

• A)should be used to evaluate a marketing manager's performance in the current year.
• B)can result in setting selling prices that are not competitive.
• C)includes the cost of unused capacity.
• D)represents the cost per unit of supplying capacity.

---

Definitions:

Yielding

Refers to the earnings generated and realized on an investment over a particular period of time, typically expressed as a percentage.

Common Stock

Shares of ownership in a corporation, granting holders voting rights and a share in the company's profits via dividends.

Tax Rate

The part of financial proceeds that the government mandates as tax payment from individuals or companies.

WACC

Stands for Weighted Average Cost of Capital, a measure that gives an idea of a company's cost of capital from all sources, including stocks and bonds.