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Management · Q82

Management Accounting

Graduate and Post Graduate · Management · question 82

Q82

An amount of available capacity other than employed capacity, to meet customer's demand, is classified as

A.
targeted capacity
B.
budgeted capacity
C.
recovery capacity
D.
unused capacity
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
An amount of available capacity other than employed capacity, to meet customer's demand, is classified as unused capacity. Idle capacity is the remaining amount of capacity left in a company after productive capacity and protective capacity have been eliminated from consideration.