Question 1
The marketing manager's performance evaluation is most fair when based on a denominator level using ________ as it is the principal short-run planning and control tool.
◦ practical capacity
◦ theoretical capacity
◦ master-budget capacity utilization
◦ normal capacity utilization
Question 2
The use of theoretical capacity results in an unrealistically low fixed manufacturing cost per unit because it is based on ________.
◦ real available capacity
◦ an unattainable and idealistic level of capacity
◦ normal capacity utilization
◦ normal costing