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Cost Accounting Final exam

?

Normal capacity is the denominator-level concept that

is based on the level of capacity utilization that satisfies average customer demand over periods generally longer than one year
is the maximum level of operations at maximum efficiency
reduces theoretical capacity for unavoidable operating interruptions
is based on anticipated levels of capacity utilization for the coming budget period

Correct - Your answer is correct.

Wrong - Your answer is wrong.

Detailed Answer

Correct answer: (A)

is based on the level of capacity utilization that satisfies average customer demand over periods generally longer than one year

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