Which of the following is the best example of a long-term capacity cost for a trucking company?
A)Performing tune-ups on older trucks.
B)Installing a GPS unit in each truck to monitor efficient routes and fuel efficiency in order to serve more customers on a daily basis.
C)Changing the oil annually in each delivery truck.
D)Replacing torn seats in several of the trucks in which truckers have complained

Question

Quizplus · Accepted Answer

Installing GPS units in each truck is a long-term capacity cost because it involves a significant investment in technology that will help the company make informed decisions about routes and fuel efficiency for years to come. Performing tune-ups, changing oil, and replacing torn seats are more routine maintenance costs that may need to be done periodically but do not represent a significant long-term investment in the company's capacity.

Which of the Following Is the Best Example of a Long-Term