The measure of production that considers historical and estimated future production levels and cyclical fluctuations is referred to as:
A)theoretical capacity
B)practical capacity
C)normal capacity
D)expected capacity

Question

Quizplus · Accepted Answer

Normal capacity considers historical and estimated future production levels and cyclical fluctuations, but also incorporates allowances for planned maintenance, downtime, and other operational factors that may result in less than full production potential. Theoretical capacity refers to the maximum output possible given perfect conditions, while practical capacity takes into account real-world constraints and may be lower than theoretical or normal capacity. Expected capacity is not a commonly used term in the context of production measurement.

The Measure of Production That Considers Historical and Estimated Future