Which of the following is not a cost of changing capacity?
A) Cost of adding machine capacity
B) Cost of hiring workforce
C) Cost of laying off workforce
D) Cost of overtime
E) Cost of reducing machine capacity

Question

Quizplus · Accepted Answer

Cost of overtime is not a cost of changing capacity, as it relates to the temporary increase in capacity utilization, rather than changing the capacity level itself. The other options (A, B, C, and E) involve the costs associated with adding or reducing capacity, including the costs related to machinery, labor, and related activities.

Which of the Following Is Not a Cost of Changing