Question

Compared to variable overhead costs planning, fixed overhead cost planning has an additional strategic issue beyond undertaking only essential activities and efficient operations. That additional requirement is best described as:_______
a. focusing on the highest possible quality
b. increasing the linearity between total costs and volume of production
c. choosing the appropriate level of capacity that will benefit the company in the long-run
d. identifying essential value-adding activities

Answer 1

Answer:

C. choosing the appropriate level of capacity that will benefit the company in the long run

Explanation:

Compared to variable overhead costs planning, fixed overhead cost planning has an additional strategic issue beyond undertaking only essential activities and efficient operations. That additional requirement is best described as choosing the appropriate level of capacity that will benefit the company in the long run