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.