An average figure, for particular period which provides zero meaning feedback to marketing manager, is termed as ____________?

Correct answer: A. normal capacity utilization

  • A. normal capacity utilization
  • B. abnormal capacity utilization
  • C. standard capacity utilization
  • D. infinite capacity utilization

Explanation

Normal capacity utilization represents an average level of activity expected over a relevant period, usually allowing for ordinary fluctuations. Abnormal utilization reflects unusual conditions rather than a useful normal benchmark.

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About Cost Accounting

Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.

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