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1. With time-driven ABC, the cost of unused capacity is not assigned to products but it...

1. With time-driven ABC, the cost of unused capacity is not assigned to products but it should not be ignored. The unused capacity remains someone’s or some department’s responsibility. Usually one can assign unused capacity after analyzing the decision that authorized the level of capacity supplied. TRUE I FALSE

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Answer #1

The unused capacity cost should be assigned to the person that was responsible for such authorization, hence the given statement is TRUE.

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