Which Statement Is True Concerning Capacity Costs

question 78

Multiple Choice

Which statement is true concerning capacity costs?

• A)Capacity costs are certain fixed costs that provide a firm with the capacity to produce or sell or both.
• B)Capacity costs need not be incurred in the short run to conduct business.
• C)Capacity costs are uncontrollable in the long run.
• D)Capacity costs are always non-value added.

---

Definitions:

Island Biogeography

A field within biogeography that examines the factors that affect the species richness and diversification of isolated natural communities.

Near Mainland

The geographical area or environment located close to a large mass of land or continent.

Further Away

A relative term used to describe a greater distance from a reference point.

Performance Problems

Issues that hinder the efficiency and effectiveness of an individual's or organization's work output.