________ is the level of capacity based on producing at full efficiency all the time.

Question

Quizplus · Accepted Answer

Theoretical capacity is the highest possible level of capacity based on producing at full efficiency all the time, without any downtime or interruptions. Practical capacity takes into account unavoidable downtime, while normal capacity takes into account both unavoidable and planned downtime. Demand capacity is the level of capacity necessary to meet current demand, and master-budget capacity is the level of capacity set in the master budget for future periods.

________ Is the Level of Capacity Based on Producing at Full