Capacity management, denominator-level capacity concepts. Each of the following items is identified by a number:

1. Should be used for performance evaluation 2. Measures the denominator level in terms of demand for the output of the plant 3. Represents the expected level of capacity utilization for the next budget period 4. Is based on producing at full efficiency all the time 5. Takes into account seasonal, cyclical, and trend factors 6. Measures the denominator level in terms ofwhat a plant can supply 7. Represents an ideal benchmark 8. Highlights the cost of capacity acquired but not used 9. Hides the cost of capacity acquired but not used 10. Should be used for long-term pricing purposes 11. If used as the denominator-level concept, would avoid the restatement ofunit costs when expected demand levels change Required Match each ofthe items with one or more ofthe following denominator-level capacity concepts by putting appropriate letter(s) by each number:

a. Theoretical capacity

b. Practical capacity

c. Normal capacity utilization

d. Master-budget capacity utilization