Regarding the measurement of capacity, when a firm provides a relatively small number of standardized products and services:
A) capacity cannot be determined reliably.
B) input measures are typically used.
C) output measures are typically used.
D) utilization becomes equal to capacity.

Question

Quizplus · Accepted Answer

When a firm provides a relatively small number of standardized products and services, output measures are typically used for measuring capacity. This is because the output is consistent and easily measurable, making it a reliable way to determine capacity. Input measures may not be as effective since they can vary based on the level of complexity of each individual product or service.

Regarding the Measurement of Capacity, When a Firm Provides a Relatively