Discuss the four possible capacity levels a firm must evaluate when deciding how to set budgeted fixed manufacturing cost rates, including the pros and cons of selecting each capacity level.

Capacity Levels

Discuss the four possible capacity levels a firm must evaluate when deciding how to set budgeted fixed manufacturing cost rates, including the pros and cons of selecting each capacity level. Explain the potential impact this decision would have on firm profitability. Respond to at least two of your classmates’ posts.

DQ2 Relevant Cost

Using this week’s lecture, discuss the concept of relevant cost for decision making, incorporating both quantitative and qualitative data concepts into the relevancy discussion. Indicate if and how opportunity costs should be considered in this decision-making process. Respond to at least two of your classmates’ posts.

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