Decisions about capacity are considered to be
A)operating decisions.
B)best done by plant supervisors.
C)best done during production.
D)more relevant for variable costs.
E)strategic decisions.

Question

Quizplus · Accepted Answer

Decisions about capacity involve long-term planning and have a significant impact on the organization's overall strategy. These decisions are not limited to production or operating decisions and cannot be left solely to plant supervisors. Capacity decisions also affect fixed costs in addition to variable costs. Therefore, they are strategic decisions that require input from top management.

Decisions About Capacity Are Considered to Be