Capacity costs are the mixed costs of being able to achieve a desired level of production or service while maintaining product or service attributes.

Question

Quizplus · Accepted Answer

Capacity costs are fixed costs that do not vary with the level of production or service output. They are associated with the maximum output or service level that can be achieved, rather than being mixed costs. Mixed costs contain both fixed and variable components.

Capacity Costs Are the Mixed Costs of Being Able to Achieve