Matching
Match each of the following items with one or more of the denominator-level capacity concepts by putting the appropriate letter(s) by each item:
Premises:
Level of capacity utilization that satisfies average customer demand over a period
Reduces theoretical capacity by considering unavoidable operating interruptions
Level of capacity utilization that managers expect for the current budget period
Producing at full efficiency all the time
Does not allow for plant maintenance
Measures capacity levels in terms of what a plant can supply
Measures capacity levels in terms of demand
Ideal goal of capacity utilization
Engineering and human resource factors are important when estimating capacity
Takes into account seasonal, cyclical, and trend factors
Responses:
Practical capacity
Master-budget capacity utilization
Normal capacity utilization
Theoretical capacity
Correct Answer:
Premises:
Responses:
Level of capacity utilization that satisfies average customer demand over a period
Reduces theoretical capacity by considering unavoidable operating interruptions
Level of capacity utilization that managers expect for the current budget period
Producing at full efficiency all the time
Does not allow for plant maintenance
Measures capacity levels in terms of what a plant can supply
Measures capacity levels in terms of demand
Ideal goal of capacity utilization
Engineering and human resource factors are important when estimating capacity
Takes into account seasonal, cyclical, and trend factors
Premises:
Level of capacity utilization that satisfies average customer demand over a period
Reduces theoretical capacity by considering unavoidable operating interruptions
Level of capacity utilization that managers expect for the current budget period
Producing at full efficiency all the time
Does not allow for plant maintenance
Measures capacity levels in terms of what a plant can supply
Measures capacity levels in terms of demand
Ideal goal of capacity utilization
Engineering and human resource factors are important when estimating capacity
Takes into account seasonal, cyclical, and trend factors
Responses:
Related Questions
Q9: Banta Corporation is in the business of
Q10: In general, if inventory increases during an
Q11: Which of the following statements is true
Q12: Which of the following costs will be
Q13: Briefly explain why many companies use absorption
Q15: _ is the continuing reduction in the
Q16: Throughput costing considers only direct materials and
Q17: The gross-margin format is used for _.<br>A)
Q18: Given a constant contribution margin per unit
Q19: Swan Textiles Inc. produces and sells a