The capacity utilization of the business, to satisfy average customer's demand, for current budget period of time is termed as ___________?
Correct answer: A. master budget capacity utilization
- A. master budget capacity utilization
- B. finite cost utilization
- C. infinite cost utilization
- D. infinite budget capacity utilization
Explanation
Master budget capacity utilization is the expected capacity level needed to meet the average customer demand during the budget period. It is based on forecast demand rather than unlimited or cost-related capacity.
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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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