Business, 25.12.2019 23:31 shaelynwolf326

The major reason for using practical capacity as the denominator for activity driver calculations is to:

a. avoid distortions induced by the assignment of unused capacity costs to the products produced or customer served.
b. simplify the calculations of the activity cost drivers.
c. reduce the cost of unused capacity.
d. place less emphasis on the cost of unused capacity.

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