Costs That Are Stable and Do Not Change with the Quantity

question 52

Short Answer

Costs that are stable and do not change with the quantity of product produced and sold are known as ______________ costs.

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Definitions:

Capacity Planning

The process of determining the production capacity needed by an organization to meet changing demands for its products.

Capacity Increment

The addition or increase in a system's or facility's ability to produce goods or services.

Fixed Costs

Expenses that do not change with the level of output or sales, such as rent, salaries, and insurance premiums.

Drum

In production and project management, often refers to the constraint or bottleneck resource that dictates the pace at which a process can run.