It is stated in chapter 5 of Cornerstones of Cost Managementthat the theoretical and...

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Accounting

It is stated in chapter 5 of Cornerstones of Cost Managementthat the theoretical and practical activity levels reflect, ingeneral, the company's production capabilities, while the expectedand normal activity levels reflect, in general, consumer demand.Please explain why these breakdowns are correct, including possibleexamples of what is being described by each of the activitylevels.

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Answer Step1 Theoretical and practical activity levels reflect in general the companys production capabilities as discussed below As per theory discussed we can say that when inventory managers check the capacity of production on paper thats activity reflect our company maximum production capabilities because when we check on paper we apply all standards of See Answer

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In: AccountingIt is stated in chapter 5 of Cornerstones of Cost Managementthat the theoretical and practical...It is stated in chapter 5 of Cornerstones of Cost Managementthat the theoretical and practical activity levels reflect, ingeneral, the company's production capabilities, while the expectedand normal activity levels reflect, in general, consumer demand.Please explain why these breakdowns are correct, including possibleexamples of what is being described by each of the activitylevels.