Which of the following assumes that capacity will be decreased because of slowdowns due to plant maintenance or other interruptions of the production lines?
A) Practical capacity
B) Theoretical capacity
C) Master-budget capacity utilization
D) Normal capacity utilization

Question

Quizplus · Accepted Answer

Practical capacity accounts for unavoidable interruptions like maintenance, thus reflecting a more realistic capacity level than theoretical capacity.

Which of the Following Assumes That Capacity Will Be Decreased