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Which of the Following Is True of Normal Capacity Utilization

Question 164

Multiple Choice

Which of the following is true of normal capacity utilization?


A) It will almost always show results that are very close to that of practical capacity utilization
B) It can result in setting selling prices that are not competitive.
C) It results in the lowest cost estimate of the four capacity options when used for product costing.
D) It is also called master-budget capacity utilization

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