What is meant by capacity utilization?
A) How much productive capacity can be effectively utilized.
B) How much productive capacity is currently being utilized.
C) The average utilization of capacity over the business cycle.
D) The capacity for utilizing something.

Question

Quizplus · Accepted Answer

Capacity utilization refers to the percentage of a company's productive capacity that is currently being utilized to manufacture goods or provide services. It is a measure of how efficiently a company is using its resources to generate output.

What Is Meant by Capacity Utilization