The Capacity Utilization Rate Is the Ratio of ________ to ________

question 48

Multiple Choice

The capacity utilization rate is the ratio of ________ to ________.

• A)production; capacity
• B)capacity; production
• C)capacity; potential GDP
• D)none of the above

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Definitions:

Sales Dollar

Refers to the total revenue generated from sales of goods or services, measured in dollars.

Administrative and Selling Expenses

Expenses incurred by a business in its day-to-day operations, including salaries of non-production staff, marketing costs, and office supplies.

Debt to Stockholders' Equity Ratio

A financial ratio indicating the relative proportion of shareholder's equity and debt used to finance a company's assets.

Liabilities

Financial obligations or debts that a company owes to others, usually as a result of past transactions or events.