Which of the Following Statements Is True About the Financial

Multiple Choice

Which of the following statements is true about the financial impact of capacity decisions?

A) The impact of capacity can go beyond service-oriented value attributes and influences cost and quality levels as well.
B) Because most costs associated with production are variable, a small volume will result in lower costs per unit.
C) Over-production results in higher cost per unit and under-production results in lower costs per unit.
D) Most capacity decisions are short-term in nature and do not effect costs in the long term.