A Capacity Cost Management System and Capacity Variance Analysis Can

Multiple Choice

A capacity cost management system and capacity variance analysis can only be used to support continuous improvement when:

A) The kaizen philosophy is entrenched throughout the organization.
B) The process has a reliable, repetitive, time-linked measure of process capability.
C) The organization is committed to a total quality management system.
D) An activity-based costing system is in place.