The denominator-level concept based on capacity utilization that satisfies average customer demand that includes seasonal and cyclical factors is called
A)theoretical capacity.
B)practical capacity.
C)normal capacity.
D)master-budget capacity.
E)supply capacity.

Question

Quizplus · Accepted Answer

Normal capacity is the denominator-level concept based on capacity utilization that satisfies average customer demand that includes seasonal and cyclical factors. Theoretical capacity refers to the maximum output a system can produce under ideal circumstances, practical capacity is the maximum output a system can produce considering realistic conditions, master-budget capacity refers to the capacity used for budgeting purposes, and supply capacity is the maximum output a supplier can produce.

The Denominator-Level Concept Based on Capacity Utilization That Satisfies Average