A reason for the importance of capacity decisions is that capacity:

Question

Quizplus · Accepted Answer

All of the options listed are valid reasons for why capacity decisions are important. Capacity limits the rate of output, affects operating costs, is a major determinant of initial costs, and is a long-term commitment of resources. Companies must carefully consider their capacity decisions to ensure they are able to meet demand, efficiently use resources, and remain financially sustainable in the long run.

A Reason for the Importance of Capacity Decisions Is That