When Significant Differences Exist Between Practical Capacity and Budgeted Capacity

question 10

Multiple Choice

When significant differences exist between practical capacity and budgeted capacity utilisation,companies may:

• A)use practical capacity for meaningful feedback to the marketing manager.
• B)use budgeted capacity utilisation for setting selling prices.
• C)classify the difference as planned unused capacity.
• D)All of these answers are correct.

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Definitions:

Advertising

The act of promoting products, services, or brands through various media channels to attract consumer interest.

Price Increase

A price increase refers to a rise in the cost of goods or services, often as a response to inflation, increased production costs, or higher demand.

Decision-making Authority

is the power or right vested in individuals or groups to make important decisions within an organization.

Persuasive Communication

The process of using messages to influence others’ beliefs, attitudes, or behaviors.