Which of the Following Capacity Levels Do Proponents of Activity-Based

question 145

Multiple Choice

Which of the following capacity levels do proponents of activity-based costing recommend to be used as the denominator level to calculate activity cost rates?

• A) practical capacity
• B) normal capacity utilization
• C) theoretical capacity
• D) master-budget capacity utilization

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Definitions:

Impulsive

Acting or done without careful consideration of the possible consequences; driven by immediate desires.

Generalized Other

A concept in sociology that represents the general expectations of society that individuals take into account when shaping their behavior.

Significant Others

People who play important roles in the early socialization experiences of children.