Question

7. Cost which is related to capacity is called :​

Answer 1

Answer:

Definition: An expenditure or cost incurred by a company in order to expand its business operations. In other words, these are expenses incurred by an organization to increase its capacity to conduct business operations. Description: Capacity costs are fixed in nature

Explanation:

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Answer 2

Explanation:

A capacity cost is incurred when a business or other organization spends money in order to expand operations or increase production capacity. Capacity costs are a necessary part of doing business, and are especially relevant for new and emerging companies that are oriented toward rapid growth.