Customers expect to pay a price that includes ________.
A) the cost of unused capacity
B) only the cost of actual capacity used
C) variable costs but not capacity costs
D) both actual and unused capacity costs

Question

Quizplus · Accepted Answer

Customers expect to pay for the cost of actual capacity used, not for the cost of unused capacity. Unused capacity costs should be covered by the company through internal cost management and not be charged to the customers. Therefore, the best choice is B, which reflects the customer's expectation of paying a fair price based on the actual service or product received.

Customers Expect to Pay a Price That Includes ________