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

Question

Quizplus · Accepted Answer

Theoretical capacity assumes that production will occur at peak capacity all the time, without any interruptions or downtime.

Theoretical Capacity Is Based on Which of the Following Assumptions