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) The advantage of using practical capacity to allocate costs:A) is that it allows a downward demand spiral to developB) is that it focuses management's attention on managing unused capacityC) is that budgets are much easier to developD) Either A or B are correct

Question

) The advantage of using practical capacity to allocate costs:A) is that it allows a downward demand spiral to developB) is that it focuses management's attention on managing unused capacityC) is that budgets are much easier to developD) Either A or B are correct

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Solution

The advantage of using practical capacity to allocate costs is that it focuses management's attention on managing unused capacity. This method encourages efficient use of resources and helps identify areas where costs can be reduced. Therefore, the correct answer is B) is that it focuses management's attention on managing unused capacity.

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