Which of the Following Statements Is True About Capacity Utilization

question 85

Multiple Choice

Which of the following statements is true about capacity utilization?

• A)It is the extent to which the capacity designed and installed is actually used.
• B)It is the capacity required to be utilized to meet market demand.
• C)It is calculated by dividing actual output by effective capacity.
• D)It is the ratio of design capacity to effective capacity.

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Definitions:

Financial Institutions

Organizations that provide financial services like deposits, loans, and investments to consumers and businesses.

International Integrated Reporting Committee

An organization that champions the evolution of corporate reporting to articulate value creation over time, integrating financial and non-financial aspects.

GRI

The Global Reporting Initiative, a leading organization that provides a comprehensive sustainability reporting framework used worldwide.

Triple Bottom Line

An accounting framework that incorporates three dimensions of performance: social, environmental, and financial.