The formula of capacity ratio is .........

CS Executive · Corporate and Management Accounting · PYQS · June 2023
The formula of capacity ratio is .........
(A) (Standard hours for actual output/ Budgeted standard hours) × 100
(B) (Actual hours works/Budgeted hours) × 100
(C) (Standard hours for actual output/ Actual hours work) × 100
(D) (Actual hours works/Standard hours for actual output) × 100

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Management Accounting

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