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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