From a Purely Cost Point of View, Is Capacity Utilization

question 74

Multiple Choice

From a purely cost point of view, is capacity utilization less than 100% desirable or not desirable?

• A)This depends on the capital structure
• B)Neither of these, because it is neutral
• C)Desirable, because it decreases unit costs
• D)Not desirable, because in theory it raises unit costs

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Definitions:

Design Pathway

The process or approach taken to solve a design problem, from ideation through to the final solution, often in the context of product development or architecture.

Least Complex

Refers to things that are the simplest or have the minimal level of difficulty.

Value-creating

The process of increasing the worth of a product, service, or business to its customers or stakeholders.

Effectuating Opportunities

The act of turning possibilities into profitable ventures or successful initiatives by taking strategic actions.