A Process's ________ Is What Its Capacity Should Be for Some

question 84

Short Answer

A process's ________ is what its capacity should be for some future time period to meet the demand of its customers, allowing for the desired capacity cushion.

---

Definitions:

Annual Operating Costs

The total expenses associated with the day-to-day functioning of a business or project over one year.

Useful Life

The estimated period over which an asset is expected to be usable for the purpose it was acquired, used for depreciation calculations.

Book Value

The net value of a company's assets minus its liabilities, often used to evaluate a company's worth.

Joint Costs

The costs that are incurred from producing two or more products in the same process.