______ costs are incurred in order to maintain existing facility capacity or add additional capacity to provide the required service.
A)Customer waiting time-related
B)Capacity related
C)Manufacturing
D)Service

Question

Quizplus · Accepted Answer

Capacity related costs refer to the expenses necessary to maintain or increase the capacity (ability to produce or provide a service) of a facility. These costs may include investments in equipment, renovation or expansion of facilities, and maintenance of existing equipment. Customer waiting time-related costs are associated with the time that customers spend waiting for service, while manufacturing and service costs refer to the direct expenses of producing goods or providing services.

______ Costs Are Incurred in Order to Maintain Existing Facility