Capacity analysis is most affected by the presence of variable costs,NOT fixed costs.

Name: Capacity analysis is most affected by the presence of variable costs,NOT fixed costs.
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Question

Quizplus · Accepted Answer

Capacity analysis is primarily concerned with the maximum output a system can produce, which is more directly influenced by fixed assets and resources (fixed costs) rather than variable costs that fluctuate with production volume.

Capacity Analysis Is Most Affected by the Presence of Variable