Start learning →

Which Porter driver raises unit cost when plant capacity sits idle?

ALearning curve effect
BLocation of plant
CCapacity utilisation
DVertical integration
Answer & Solution
Correct answer: C. Capacity utilisation
Under-utilised capacity leaves fixed costs spread over fewer units, which raises cost per unit.
Practise this question with Quill — CA Final →

Keep practising Introduction to Strategic Cost Management

Browse all Introduction to Strategic Cost Management questions for CA Final, or explore more Cost and Management Accounting topics.

Start a Introduction to Strategic Cost Management lesson →
Related questions