Which of the following is true of capacity costs?
A) Capacity costs are difficult to estimate.
B) Capacity costs don't provide a useful planning tool for nonmanufacturing firms.
C) Capacity costs cannot be used with activity-based costing.
D) Capacity costs do not arise in the nonmanufacturing parts of the value chain.

Question

Quizplus · Accepted Answer

Capacity costs can be difficult to estimate accurately, as they depend on various factors such as the level of utilization, technology, and market demand.

Which of the Following Is True of Capacity Costs