Match Each of the Following Items with One or More

question 115

Essay

Match each of the following items with one or more of the denominator-level capacity concepts by putting the appropriate letter(s)by each item:
a.Theoretical capacity
b.Practical capacity
c.Normal capacity utilization
d.Master-budget capacity utilization
1.Reduces theoretical capacity by considering unavoidable operating interruptions
2.Producing at full efficiency all the time
3.Measures capacity levels in terms of demand
4.Level of capacity utilization that satisfies average customer demand over a period
5.Does not allow for plant maintenance
6.Engineering and human resource factors are important when estimating capacity
7.Level of capacity utilization that managers expect for the current budget period
8.Ideal goal of capacity utilization
9.Takes into account seasonal,cyclical,and trend factors
10.Measures capacity levels in terms of what a plant can supply

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Definitions:

Profits

The financial gain obtained when the revenues generated from business activities exceed the expenses, costs, and taxes involved in sustaining the activity.

Risk-Bearing

The assumption of the risk and uncertainty involved in an enterprise or investment.

Frank Knight

An influential economist known for his work on risk, uncertainty, and the role these factors play in the economy.

Henry George

An American economist and social reformer of the 19th century known for his advocacy of a "single tax" on land to improve social equity.