Which of the Following Is True of Theoretical Capacity

question 10

Multiple Choice

Which of the following is true of theoretical capacity?

• A) It will be less than the real capacity available to a company.
• B) It provides the best perspective of actual long-run costs.
• C) It results in the lowest cost estimate of the four capacity options when used for product costing.
• D) It replicates the cost of capacity in a competitor's cost structure.

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Definitions:

Inductive Reactance

The opposition to the change in current in an inductor, depending on the frequency of the current and the inductance.

Angle Theta

Generally used to express the phase angle difference between voltage and current in a reactive circuit.

Total Resistance

The sum of all resistances within an electrical circuit that affects the overall flow of electric current.

Series RL Circuit

An electrical circuit consisting of resistors (R) and inductors (L) connected in a series configuration, exhibiting both resistance and inductive reactance.