Practical capacity may:
A)increase over time due to improvements in plant layout
B)decrease over time due to efficiencies offered by new technologies
C)cannot be altered unless there is a major plant expansion
D)Both A and B are correct.

Question

Quizplus · Accepted Answer

Practical capacity can increase over time due to improvements in plant layout. This can lead to better utilization of resources and higher output without necessarily expanding the physical size of the plant. It is not always true that practical capacity will decrease over time due to efficiencies offered by new technologies, as the adoption of new technologies may actually increase practical capacity in some cases. Therefore, option D is not the correct answer. Option C is also not correct as practical capacity can be altered without a major plant expansion.

Practical Capacity May