Theoretical Capacity Is Based on Which of the Following Assumptions

question 114

Multiple Choice

Theoretical 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 capacity all the time
• D)production will occur at peak capacity where feasible (e. g., except for maintenance downtime)
• E)production can never occur at peak capacity

---

Definitions:

Standard Deviation

The measure of the dispersion or variability in a set of numbers, indicating how spread out the numbers are from the mean.

Variance

Measures the spread between numbers in a dataset, indicating how much the data points differ from the mean.

Significantly More

A statistical term indicating that an observed effect or difference is large enough that it is unlikely to have occurred by chance, based on a set significance level.

Independent Sample Variances

Variability measures of two or more independent samples, analyzed to understand difference across populations.