What Does Capacity Cost Mean?



What Does Capacity Cost Mean?..

Answer / bjanmejai

A fixed expense incurred by a company
or organization in order to provide for
or increase its ability to conduct
business operations. Capacity costs
generally do not vary with production
levels and can be reduced or avoided
only by shutting down business locations
or outsourcing.

Is This Answer Correct ?    17 Yes 0 No

Post New Answer

More Accounting General Interview Questions

Diffrence between Statutory Audit & Internal Audit

2 Answers   Goldman Sachs,


Why in SAP external number range should be selected for depreciation posting . any specific reasons for that explain me? Raj

0 Answers   IBM,


What are the activities that are included in the cash flow statement?

0 Answers  


Tell me did you use accounting applications at your previous companies or prefer working manually?

0 Answers  


pass the journal as wellas ledger entries off the foll 1st jan :> started businress with cash rs 1,20,000 & goods worth rs 60,000. 2nd jan > cash purchases rs 50,000. 4th jan >cash sales rs 40,000. 6th jan > purchase good's from sonali on credit worth rs 30,000 at 10 % trade discount. 8th jan> sold sood's to komal on credit rs 20,000 at 10% trade discount. 10th jan > paid rent by a cheque rs 50,000. 12th jan > good's worth rs 4,000 lossed by fire. 14th jan > good's worth rs 3,000 withdrawn from business for personal use. 16th jan > good's worth rs 2,000 distributed as free samples. 18th jan > good's worth rs 1,000 exchange for furniture.

0 Answers   Marketing Sales,






purchased a laptop for Rs.50000 and received one calculator costing Rs.1000 for free. Both laptop and calculator (stationery in nature) are meant for office use.What will be the journal entry in the books of both the parties?

21 Answers  


Define overhead in terms of accounting?

0 Answers  


Cash bill of sale so the company can deduct the amount.

0 Answers  


Why SAP Fico module is given more importance than Tally & other softwares

2 Answers  


Explain financial accounting. What are its characteristic features?

0 Answers  


Goods destroy by fire-journal entry?

15 Answers   Syntel,


My Annual salary 180000/- and house rent income 24000/- and for 2009-10.LIC paid Rs 18000/- annual and 3500/- mediclaim so please explain me with detals how caluclate the tax which is paid to department. Please give all details of calucation.

4 Answers  


Categories