Customers expect to pay a price that includes ________.
A) the cost of unused capacity
B) only the cost of actual capacity used
C) variable costs but not capacity costs
D) the cost of direct materials, direct labor, and fixed overhead

Question

Quizplus · Accepted Answer

Customers typically expect to pay for the actual capacity used, rather than the cost of unused capacity. This is because they only benefit from and use the capacity that they require, so do not see the value in paying for unused capacity.

Customers Expect to Pay a Price That Includes ________