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Author Question: Using master-budget capacity to allocate budgeted fixed manufacturing costs can result in a (Read 159 times)

lilldybug07

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on: Mar 6, 2021

Question 1

Using ________ as the denominator level also gives the manager a more accurate idea of the resources needed and used to produce a unit by excluding the cost of unused capacity.
◦ practical capacity
◦ normal capacity utilization
◦ theoretical capacity
◦ master-budget capacity utilization

Question 2

Using master-budget capacity to allocate budgeted fixed manufacturing costs can result in a
◦ stable measure; avoiding the recalculation of unit costs when expected demand levels change
◦ fixed costs spread over available capacity
◦ can result in a downward demand spiral
◦ in fixed overhead costs calculated based on capacity available
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by lilldybug07 on Mar 6, 2021

Viet Thy

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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lilldybug07

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Reply 2 on: Mar 6, 2021
Thanks for the timely response, appreciate it

diana chang

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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