Given the Following Information, What Would Efficiency Be

question 204

Multiple Choice

Given the following information, what would efficiency be?
Effective capacity = 80 units per day
Design capacity = 100 units per day
Utilization = 48 percent

• A)20 percent
• B)35 percent
• C)48 percent
• D)60 percent
• E)80 percent

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Definitions:

Debt Covenants

Restrictions lenders put on borrowing agreements to preserve their interests by restricting certain actions of the borrower.

Accounting Changes

Modifications in an entity's accounting principles, estimations, or reporting entity that necessitate restatements or disclosures in financial statements to reflect these changes accurately.

Fixed Charge Coverage

A financial ratio that measures a company's ability to cover its fixed charges, such as interest and lease expenses, with its earnings before interest, taxes, depreciation, and amortization (EBITDA).

Dividends

Dividends are portions of a company's earnings paid out to shareholders as a reward for their investment.