Average Safety Capacity or a Capacity Cushion for a Factory

question 57

Multiple Choice

Average safety capacity or a capacity cushion for a factory is computed:

• A) over a year.
• B) over a month.
• C) twice a year.
• D) twice a month.

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Definitions:

Projected Addition

Projected addition refers to the estimated increase or expansion in a company's assets, revenues, or capabilities, based on future plans or investments.

Debt-Equity Ratio

An indicator that specifies the proportional role of shareholders' equity and debt in asset funding.

Dividend Payout Ratio

The fraction of earnings a firm pays out to its shareholders in the form of dividends, expressed as a percentage of the company's total earnings.

Retained Earnings

Retained earnings refer to the portion of a company's profits that are kept by the company instead of being paid out as dividends to shareholders, often used for reinvestment in the business or to pay down debt.