What does capacity cost mean?

capacity cost meaning in Law Dictionary

fixed expenditure sustained by an organization or business being offer or increase its ability to conduct business operations. Ability prices usually cannot vary with production amounts and certainly will be decreased or averted just by closing down business locations or outsourcing.

capacity cost meaning in Business Dictionary

A fixed expense for a company which will give or increase company operations. The expense never frequently transform with manufacturing amounts. To help a business to operate it must bear these costs it doesn't matter how much or how little company is really being done. The expense are reduced or avoided as long as the company areas tend to be shut or as a result of outsourcing of work. Types of capability expenses may include rent payments, machine/equipment depreciation, insurance, resources, and insurance charges.