Choosing fixed cost using appropriate level of capacity

Reference no: EM131766246

Question: Effective planning for fixed overhead costs is similar to planning for variable overhead costs-focusing on eliminating the non-value added costs is a vital process that need to be considered. An additional strategic issue for managers in fixed costs is choosing the appropriate level of capacity that will benefit the company in the long run. Does the day-to-day operating decisions have any influence in planning for fixed assets? Please, explain your position with examples.

Reference no: EM131766246

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