The capacity level which assumes continuous, uninterrupted production 365 days per year is called
A) Budgeted capacity
B) Normal capacity
C) Practical capacity
D) Theoretical capacity

Question

Quizplus · Accepted Answer

The theoretical capacity assumes continuous, uninterrupted production without any downtime or interruptions due to maintenance or other factors. It is therefore the best fit for this scenario. Budgeted capacity is the level of capacity that a business plans to operate at during a certain period, while practical capacity takes into account expected interruptions in production. Normal capacity is the level of production that can be achieved over a longer period, typically a year or more, but may not assume continuous, uninterrupted production.

The Capacity Level Which Assumes Continuous, Uninterrupted Production 365 Days