Excess capacity is a sign:
A)that capacity should be reduced
B)that capacity may need to be re-evaluated
C)that the company is suffering a significant economic loss
D)of good management decisions

Question

Quizplus · Accepted Answer

Excess capacity can indicate that the company has more capacity than it currently needs or can efficiently utilize, which may signal the need for a re-evaluation of their business strategy and capacity planning. However, it does not necessarily mean that capacity should be reduced or that the company is suffering significant economic losses, and it may not directly indicate good management decisions.

Excess Capacity Is a Sign