Answer (C) is correct . According to IMA’s Statement on Management Accounting, Measuring the Cost of Capacity , maximizing the value created within an organization starts with understanding the nature and capabilities of all of the company’s resources. Capacity is defined from several different perspectives. Managing capacity cost starts when a product or process is first envisioned. It continues through the subsequent disposal of resources downstream. Effective capacity cost management requires supporting effective matching of a firm’s resources with current and future market opportunities.
Answer (A) is incorrect because Effective capacity management maximizes value delivered to customers.
Answer (B) is incorrect because Effective capacity management minimizes required future investments.
Answer (D) is incorrect because Effective capacity management minimizes waste in the short, intermediate, and long run.
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