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Transfer pricing/ Relevant costing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Transfer pricing/ Relevant costing

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.
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  • May 11, 2016 at 8:05 am #314549
    Amer
    Member
    • Topics: 22
    • Replies: 8
    • ☆

    What is the difference between spare and full capacity?

    May 11, 2016 at 11:01 am #314569
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54835
    • ☆☆☆☆☆

    If a business is working at full capacity it means they are producing as many units as they are able to (due to limits on the amount of material available or the amount of labour available etc..)

    If they have spare capacity then it means that they could produce more that they are currently doing.

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