Certain fixed costs that provide a firm with the capability to produce or sell or both are known as:
A)capacity costs.
B)committed costs.
C)discretionary costs.
D)opportunity costs.

Name: Certain fixed costs that provide a firm with the capability to produce or sell or both are known as: A)capacity costs. B)committed costs. C)discretionary costs. D)opportunity costs.
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Question

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Capacity costs are fixed costs that provide a firm with the capability to produce or sell, such as costs for facilities and equipment.

Certain Fixed Costs That Provide a Firm with the Capability