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Which of the Following Is True of Master-Budget Capacity Utilization

Question 94

Multiple Choice

Which of the following is true of master-budget capacity utilization?


A) It hides the amount of unused capacity.
B) It represents the maximum units of production intended for current capacity.
C) It provides the best cost estimate for benchmarking purposes.
D) It is an average that provides no meaningful feedback to a firm's marketing manager for a particular year.

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