Effective Capacity Is ______

question 84

Multiple Choice

Effective capacity is ______.

• A)the maximum rate of output achieved by an operation,a process,or a manufacturing or service facility that is producing under ideal conditions
• B)the capacity that can be achieved given the actual changes in product mix,machines and equipment that require periodic maintenance,scheduling changes,and workers who take time off for lunch,absences,and other needs
• C)greater than design capacity
• D)dependent on the company's market share

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Definitions:

Subsidiaries

Companies that are controlled by another company, known as the parent company, through ownership of the majority of voting stock.

Intra-entity Gains

Profits realized from transactions within the same entity, often eliminated in preparation of the consolidated financial statements.

Separate Tax Returns

Tax filings made by individuals or married couples separately, rather than a joint tax return, often to optimize tax liability.