In general, managerial decisions affecting capacity-related costs and activities also affect volume-level, batch-level, and product-level cost and activities.

Question

Quizplus · Accepted Answer

Managerial decisions on capacity-related costs often influence other cost levels because they are interconnected; changes in capacity can impact production volume, batch sizes, and product variety, affecting costs at each level.

In General, Managerial Decisions Affecting Capacity-Related Costs and Activities Also