________ reduces theoretical capacity for unavoidable operating interruptions.
A) Practical capacity
B) Theoretical capacity
C) Master-budget capacity utilization
D) Normal capacity utilization

Question

Quizplus · Accepted Answer

Practical capacity takes into account the operating interruptions such as maintenance, downtime, and employee breaks that reduce the theoretical capacity to produce goods or services. Therefore, practical capacity is a more realistic measure of actual production capability.

________ Reduces Theoretical Capacity for Unavoidable Operating Interruptions