Question

The best cost estimate for resources required to handle production runs is developed by using​ ________ as the denominator for activity cost driver calculations. A. practical capacity B. estimated driver quantities of estimated production runs C. actual driver quantities of actual production runs D. available capacity

Answer 1

Practical Capacity

Step-by-step explanation:

Practical Capacity is the estimate of maximum output of products or services that an organization can produce. It is used to calculate the quantity of cost drivers that would be used for the production of the product or services. The practical capacity is always within the available capacity of the firm.