Practical capacity is estimated based on:
A)Engineering studies and labour use patterns
B)The behaviour of fixed costs
C)The behaviour of variable costs
D)Demand patterns

Question

Quizplus · Accepted Answer

Practical capacity is estimated based on engineering studies and labour use patterns, as well as other operational factors such as machinery, production flow, and plant layout. This helps to determine the maximum amount of output that a facility can produce under normal operating conditions. The other options listed (B, C, and D) relate more to cost and demand factors, which may be considered in assessing capacity, but they do not directly address the physical capabilities of the facility itself.

Practical Capacity Is Estimated Based On