Effective Capacity Is The

question 232

Multiple Choice

Effective capacity is the:

• A) maximum output of a system in a given period.
• B) capacity a firm expects to achieve given the current operating constraints.
• C) average output that can be achieved under ideal conditions.
• D) minimum usable capacity of a particular facility.
• E) sum of all of the organization's inputs.

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Definitions:

Capital

Wealth in the form of money or assets, used or available for use in the production of more wealth.

Accounting Profit

The total revenue of a business minus its explicit costs; does not include opportunity costs.

Home-Organization

The process of organizing and arranging the living space within a home for better functionality and aesthetics.

Farming

The activity or business of growing crops and raising livestock for food, fiber, and other products.