Which of the Following Is True of Capacity Costs

question 202

Multiple Choice

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.

Comprehend the impact of market failures on the economy and the potential role of government intervention.

Analyze the dynamic nature of consumer preferences and its impact on industry profitability and resource allocation.

Acknowledge the efficiency gains from competition and the market's role in allocating resources to their most valued uses.

Understand the role and impact of consumers' preferences in a market economy.

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