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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.

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