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When a Chase Demand Strategy Is Used for Managing Capacity,effective

question 30

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When a chase demand strategy is used for managing capacity,effective plans must be in place to utilize,transfer or reduce service capacity when there is excess available and to develop or borrow capacity quickly when demand exceeds capacity.


Definitions:

Overhead Applied

The amount of overhead cost assigned to a particular cost object, using a predetermined rate, regardless of the actual overhead incurred.

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