Managers Cannot Reduce the Costs of Capacity Easily or Quickly

question 26

True/False

Managers cannot reduce the costs of capacity easily or quickly because they are fixed.

---

Definitions:

Planning Budget

A financial plan that forecasts revenues, expenses, and resources over a specific period, aiding in strategic decision-making.

Net Operating Income

Income from operations after all operating expenses have been deducted, but before interest and taxes.

Units

A measure of quantity, often used in the context of production, inventory, or sales.

Static Budget

A budget that is based on a fixed level of output or sales and does not change with the actual level of activity during the period.