Utilization Will Always Be Lower Than Efficiency Because

question 53

Multiple Choice

Utilization will always be lower than efficiency because

• A) Effective capacity is less than design capacity.
• B) Effective capacity is greater than design capacity.
• C) Effective capacity equals design capacity.
• D) False, Utilization and efficiency are equal in value.
• E) False, Utilization is normally greater than efficiency.

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Definitions:

Qualitative Characteristic

A feature that describes the non-quantitative aspects of accounting information, which makes it useful for decision-making.

Financial Information

Data and facts regarding a company's financial performance, position, and cash flows, as represented in its financial statements and other reports.

Clearly And Concisely

Expressing ideas or information in a straightforward and brief manner without losing clarity.

Accounting Improprieties

Actions or practices that deviate from accepted accounting practices and principles, often intended to manipulate financial statements.