Which of the Following Statements Is True About Capacity Utilization

question 26

Multiple Choice

Which of the following statements is true about capacity utilization and capacity efficiency?

• A)Either measure can be used independently of the other.
• B)Using one measure only and ignoring the other can lead to misleading conclusions about capacity performance.
• C)Capacity utilization can be calculated given capacity efficiency and design capacity.
• D)Capacity utilization can be calculated given capacity efficiency and effective capacity.

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Definitions:

Typical Consumer

A representative or average consumer whose buying behavior reflects that of a larger defined group of consumers.

Supply Chain Level

Denotes the stage or position of an entity within the overall network from raw materials to end customer.

Individual Firm Level

The perspective of analyzing business strategies, performance, and decision-making at the single company level.

Environmental Performance

An evaluation of how well an organization or product meets specific environmental criteria or standards, reflecting on sustainability practices.