Question: 1.Explain and compare the following terms: theoretical capacity, practical capacity, normal capacity, and budgeted production. 2.Explain why absorption costing is the only method allowed by

1.Explain and compare the following terms: theoretical capacity, practical capacity, normal capacity, and budgeted production.

2.Explain why absorption costing is the only method allowed by GAAP.

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1 Explanation and comparison of the terms Theoretical Capacity This refers to the maximum output a production facility or system can achieve under ideal conditions assuming no downtime no delays and p... View full answer

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