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:

Option Quotes

Option quotes provide the price at which an option can be bought or sold, displaying details like the strike price, expiration date, and whether it's a call or put option.

Net Profit

The actual profit after working expenses not included in the calculation of gross profit have been paid.

Options Strategy

Involves various trades with options and often the underlying assets to capitalize on market movements or protect against risk.

Narrow Range

Narrow Range indicates a situation where there is a small difference between the high and low prices over a set period of time.