Measures of capacity utilization include: the number of hours that facilities, labor and equipment are productively employed in revenue operations and the size of the physical facility.

Question

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Measures of capacity utilization typically focus on the percentage of a company's potential output that is actually being realized (e.g., the number of hours facilities, labor, and equipment are productively employed), rather than the size of the physical facility, which is a measure of capacity rather than its utilization.

Measures of Capacity Utilization Include: the Number of Hours That