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(Appendix 5A)Which Level of Activity,if Used to Set a Predetermined

Question 108

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(Appendix 5A) Which level of activity,if used to set a predetermined overhead rate,may encourage managers to increase selling prices as demand falls?


A) Budgeted level of activity.
B) Actual level of activity.
C) Capacity (maximum) level of activity.
D) Normal level of activity.

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