The absolute maximum production activity of a manufacturing firm is called:
A)Expected activity level
B)Normal activity level
C)Theoretical activity level
D)Practical activity level

Question

Quizplus · Accepted Answer

The theoretical activity level refers to the maximum production capacity that a manufacturing firm can achieve if all resources are utilized at their maximum level, without considering any external constraints. This level of production is usually not sustainable or achievable in reality, but it helps businesses to set performance benchmarks and identify areas for improvement.

The Absolute Maximum Production Activity of a Manufacturing Firm Is