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    Cost Accounting
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    Exam 9: Inventory Costing and Capacity Analysis
  5. Question
    Using Practical Capacity as the Denominator Level Sets the Cost
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Using Practical Capacity as the Denominator Level Sets the Cost

Question 131

Question 131

True/False

Using practical capacity as the denominator level sets the cost of capacity at the cost of supplying the capacity, regardless of the demand for the capacity.

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