For Financial Reporting, SFAS 151 Requires

Multiple Choice

For financial reporting, SFAS 151 requires:

A) the allocation of fixed manufacturing overhead to production must be based on theoretical capacity of the facilities
B) the allocation of fixed manufacturing overhead to production must be based on normal capacity of the facilities
C) the allocation of fixed manufacturing overhead to production must be based on practical capacity of the facilities
D) the allocation of fixed manufacturing overhead to production must be based on the average of the capacity of the facilities over the three most recent period