For Internal Reporting Purposes, It Is Recommended That Fixed Overhead

Multiple Choice

For internal reporting purposes, it is recommended that fixed overhead allocation rates in a standard costing system be based on which of the following denominator volume choices?

A) Budgeted capacity usage since this is the most likely output level.
B) Theoretical capacity since this is the level required under generally accepted accounting principles.
C) Actual capacity utilization.
D) Expected capacity usage.
E) Practical capacity.