Which of the following measures capacity levels in terms of demand for the output of the plant?
A) practical capacity and theoretical capacity
B) theoretical capacity and normal capacity utilization
C) normal capacity utilization and master-budget capacity utilization
D) master-budget capacity utilization and practical capacity

Question

Quizplus · Accepted Answer

Normal capacity utilization and master-budget capacity utilization are the measures that consider the demand for the output of the plant. Practical capacity and theoretical capacity are measures that focus on the technical capacity of the plant, and theoretical capacity and normal capacity utilization do not take into account the budgeted demand for the plant's output. Master-budget capacity utilization and practical capacity do not consider the actual or expected demand for the plant's output.

Which of the Following Measures Capacity Levels in Terms of Demand