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  3. Study Set
    Cost Accounting Study Set 2
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    Exam 7: Target Costing, Managing Activities and Managing Capacity
  5. Question
    What Is the Effect of Spreading Fixed Manufacturing Costs Over
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What Is the Effect of Spreading Fixed Manufacturing Costs Over

Question 42

Question 42

Multiple Choice

What is the effect of spreading fixed manufacturing costs over a shrinking budgeted capacity utilisation amount?


A) Increased unit costs
B) Greater utilisation of capacity
C) Greater demand for the product
D) More competitive selling prices

Correct Answer:

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