Strategic decisions about the scale and scope of an organization's activities generally result in fixed levels of
A) capacity costs.
B) discretionary costs.
C) mixed costs.
D) engineered costs.

Question

Quizplus · Accepted Answer

Strategic decisions about the scale and scope of an organization's activities generally result in fixed levels of capacity costs. These costs are incurred to acquire and maintain the production capacity needed to support the organization's activities, such as building facilities, purchasing equipment, and hiring personnel. Once the capacity is in place, the costs associated with it are typically fixed, meaning they do not change significantly based on changes in the level of activity.

Strategic Decisions About the Scale and Scope of an Organization's