________ capacity represents an ideal goal,which some managers may wish to set as an aspirational goal.
A)Practical
B)Master budget
C)Theoretical
D)Normal

Question

Quizplus · Accepted Answer

Theoretical capacity represents the maximum output that could be achieved under ideal circumstances, without any interruption or downtime. It represents the upper limit of what a production process could achieve, and is often used as an aspirational goal or benchmark for managers to aim for. Practical capacity, on the other hand, takes into account real-world factors such as machine breakdowns, scheduled maintenance, and other disruptions that may limit production. Master budget refers to a comprehensive financial plan that covers all aspects of a company's operations over a given period, including sales forecasts, expense budgets, and capital expenditures. Normal capacity refers to the average output that a production process can achieve over a period of time, taking into account typical disruptions and fluctuations in demand.

________ Capacity Represents an Ideal Goal,which Some Managers May Wish