Practical Capacity Is Based on Which of the Following Assumptions

question 70

Multiple Choice

Practical capacity is based on which of the following assumptions?

• A)that absorption costing is used
• B)that variable costing is used
• C)Production will occur at peak efficiency all the time.
• D)Production will occur at peak capacity where feasible (e. g., except for maintenance downtime, repairs, holidays, etc.).
• E)Production can never occur at peak capacity.

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Definitions:

Sample

A small part or quantity intended to show what the whole is like or to be used for testing and analysis.

Population

The whole group of individuals or entities that is the subject of statistical analysis.

Statistical Base

The underlying data or information used for statistical analysis or for forming conclusions.

Numerator

The top number in a fraction, representing the number of equal parts being considered, as opposed to the denominator which indicates the total number of parts.