________ reduces theoretical capacity for unavoidable operating interruptions.
A)Normal capacity utilisation
B)Theoretical capacity
C)Practical capacity
D)Budgeted capacity utilisation

Question

Quizplus · Accepted Answer

Practical capacity takes into account unavoidable operating interruptions, such as equipment downtime, maintenance or employee absences, which can reduce the theoretical capacity of a production line. This helps to establish a more realistic capacity utilization level for production planning and cost estimation.

________ Reduces Theoretical Capacity for Unavoidable Operating Interruptions