Capacity costs are controllable in the short term.

Question

Quizplus · Accepted Answer

Capacity costs refer to the fixed costs associated with maintaining a certain level of production capacity. These costs are typically not easily controllable in the short term, as they are often tied to long-term contracts or investments in equipment and facilities. While capacity costs may be manageable through long-term planning and strategic decision-making, they are generally not considered a variable cost that can be easily adjusted in the short term.

Capacity Costs Are Controllable in the Short Term