Which of the following statement is(are) true?

1. (A) Unused capacity costs incurred for the benefit of a company's customers (e.g., meet seasonal demands) should be assigned to the customers that require (use) the excess capacity.

2. (B) In general, managerial decisions affecting capacity-related costs and activities also affect volume-related, batch-related, and product-related cost and activities.

Multiple Choice

• Only A is true.

• Only B is true.

• Both of these are true.

• Neither of these is true.