The fixed costs required to achieve a desired level of production or to provide a desired level of service, while maintaining product or service attributes (e.g., quality), are:
A) engineered costs
B) mixed costs
C) committed costs
D) capacity costs

Question

Quizplus · Accepted Answer

Capacity costs are fixed costs necessary to achieve a certain level of production or service while maintaining quality.

The Fixed Costs Required to Achieve a Desired Level of Production