The fixed costs required to achieve a desired level of production or to provide a desired level of service,while maintaining product or service attributes,are ________.
A)discretionary fixed costs
B)mixed costs
C)capacity costs
D)cost-reducing costs

Question

Quizplus · Accepted Answer

Capacity costs are the fixed costs required to achieve a desired level of production or service while maintaining product or service attributes. Discretionary fixed costs are costs that can be easily adjusted in the short term, while mixed costs include both variable and fixed components. Cost-reducing costs are not a recognized category of costs.

The Fixed Costs Required to Achieve a Desired Level of Production