________ is the level of capacity utilisation that satisfies average customer demand over a period that includes seasonal,cyclical and trend factors.
A)Budgeted capacity utilisation
B)Normal capacity utilisation
C)Practical capacity
D)Theoretical capacity

Question

Quizplus · Accepted Answer

Normal capacity utilisation is the level of capacity that satisfies average customer demand over a period that includes seasonal, cyclical and trend factors. This takes into account the fluctuation in demand that happens over time and ensures that the capacity is utilised efficiently without being underutilised or overburdened. Budgeted capacity utilisation refers to the planned level of capacity utilisation, while practical capacity denotes the maximum level of capacity that can be achieved in real-world conditions. Theoretical capacity is the level of capacity that could be achieved under optimal conditions, without any external or internal factors affecting it.

________ Is the Level of Capacity Utilisation That Satisfies Average