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Match Each of the Following Descriptor Items to Denominator-Level Capacity

Question 155

Matching

Match each of the following descriptor items to denominator-level capacity concepts

Premises:
Reduces theoretical capacity by considering unavoidable operating interruptions
Producing at full efficiency all the time
Measures capacity levels in terms of demand
Level of capacity utilisation that satisfies average customer demand over a period
Does not allow for plant maintenance
Engineering and human resource factors are important when estimating capacity
Level of capacity utilisation that managers expect for the current budget period
Ideal goal of capacity utilisation
Takes into account seasonal, cyclical, and trend factors
Measures capacity levels in terms of what a plant can supply
Responses:
Theoretical capacity
Practical capacity
Normal capacity utilisation
Budgeted capacity utilisation

Correct Answer:

Reduces theoretical capacity by considering unavoidable operating interruptions
Producing at full efficiency all the time
Measures capacity levels in terms of demand
Level of capacity utilisation that satisfies average customer demand over a period
Does not allow for plant maintenance
Engineering and human resource factors are important when estimating capacity
Level of capacity utilisation that managers expect for the current budget period
Ideal goal of capacity utilisation
Takes into account seasonal, cyclical, and trend factors
Measures capacity levels in terms of what a plant can supply
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