Which of the Following Statements Regarding Capacity Is NOT True

question 6

Multiple Choice

Which of the following statements regarding capacity is NOT true?

• A)Capacity can be measured in several units such as hours of output,number of units produced,number of customers served,etc.
• B)Effective capacity is generally less than the theoretical capacity.
• C)Capacity is the maximum output that could be produced over a period of time.
• D)The 'maximum output' of a process is not a meaningful measure.

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Definitions:

Contractual Agreement

A legally binding contract between two or more parties outlining terms and conditions of an agreement.

Par Value

The nominal value of a bond or stock as stated by the issuer, unrelated to its market value.

Cash Flows

The total amount of money being transferred into and out of a business, principally involving operating, investing, and financing activities.

Annuity

A financial product that pays out a fixed stream of payments to an individual, often used as an income stream for retirees.