All the following are true regarding practical capacity except:
A) Practical capacity produces challenging but feasible goals.
B) Practical capacity will lead to an unfavorable fixed MOH volume variance if actual production exceeds planned practical capacity.
C) Practical capacity has a moderate fixed MOH rate and moderate prices.
D) Practical capacity will lead to an unfavorable fixed MOH volume variance if actual production does not meet planned practical capacity.
Correct Answer:
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