Practical capacity is the denominator-level concept that ________.
A) reduces theoretical capacity for unavoidable operating interruptions
B) is the maximum level of operations at maximum efficiency
C) is based on the level of capacity utilization that satisfies average customer demand over periods generally longer than one year
D) is based on anticipated levels of capacity utilization for the coming budget period

Question

Quizplus · Accepted Answer

Practical capacity takes into account unavoidable interruptions such as maintenance, downtime, and other planned events that reduce the potential output of a facility. It is the maximum level of output that can realistically be achieved over a given period of time.

Practical Capacity Is the Denominator-Level Concept That ________