Solved

Match Each of the Following Items with One or More

Question 211

Matching

Match each of the following items with one or more of the denominator-level capacity concepts by putting the appropriate letter(s) by each item:

Premises:
Reduces theoretical capacity by considering unavoidable operating interruptions
Producing at full efficiency all the time
Measures capacity levels in terms of demand
Level of capacity utilization that satisfies average customer demand over a period
Does not allow for plant maintenance
Engineering and human resource factors are important when estimating capacity
Level of capacity utilization that managers expect for the current budget period
Ideal goal of capacity utilization
Takes into account seasonal, cyclical, and trend factors
Measures capacity levels in terms of what a plant can supply
Responses:
Theoretical capacity
Practical capacity
Normal capacity utilization
Master-budget capacity utilization

Correct Answer:

Reduces theoretical capacity by considering unavoidable operating interruptions
Producing at full efficiency all the time
Measures capacity levels in terms of demand
Level of capacity utilization that satisfies average customer demand over a period
Does not allow for plant maintenance
Engineering and human resource factors are important when estimating capacity
Level of capacity utilization that managers expect for the current budget period
Ideal goal of capacity utilization
Takes into account seasonal, cyclical, and trend factors
Measures capacity levels in terms of what a plant can supply
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