Which of the Following Statements Is(are)true? (A)Theoretical Capacity Is the Long-Run

Multiple Choice

Which of the following statements is(are) true? (A) Theoretical capacity is the long-run expected volume based on reasonably attainable working conditions.(B) The cost of excess capacity is allocated to individual cost objects using the cost driver rate.

A) Only A is true.
B) Only B is true.
C) Both A and B are true.
D) Neither A nor B is true.