Theoretical Capacity Is Based on Which of the Following Assumptions

question 140

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 efficiency 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