Start learning →

In Porter's approach, under-utilised capacity has what effect on cost per unit?

ALowers cost per unit
BLeaves it unchanged
CRaises cost per unit
DRemoves all fixed costs
Answer & Solution
Correct answer: C. Raises cost per unit
Idle capacity spreads fixed cost over fewer units, so each unit costs more.
Practise this question with Quill — CA Final →

Keep practising Strategic Cost Management and Emerging Business Models

Browse all Strategic Cost Management and Emerging Business Models questions for CA Final, or explore more Cost and Management Accounting topics.

Start a Strategic Cost Management and Emerging Business Models lesson →
Related questions