Capacity costs are controllable over the long-term.

Question

Quizplus · Accepted Answer

Capacity costs refer to the expenses associated with increasing or decreasing the production capacity of a business. These costs are generally controllable over the long-term because they can be planned for and managed through strategic decisions such as investing in new equipment or facilities, hiring or laying off employees, adjusting production schedules, etc. However, in the short-term, capacity costs may be less controllable due to factors such as unexpected changes in demand, supply chain disruptions, or regulatory requirements.

Capacity Costs Are Controllable Over the Long-Term