Question: How would managers that use the time-driven activity-based costing (TDABC) system to identify the unused capacity and compulsory unused capacity to make decisions to retain,

How would managers that use the time-driven activity-based costing (TDABC) system to identify the unused capacity and compulsory unused capacity to make decisions to retain, remove and or reassign workers for work shifts? Let's say the company gave those retained employees a pay increase, do you think the managers will have to update their cost-driver rate to have more of an accurate reflection on the current conditions?

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