When there are significant differences between practical capacity and budgeted capacity utilisation,several companies classify the difference as planned ________ capacity.
A)unused
B)practical
C)theoretical
D)used

Question

Quizplus · Accepted Answer

Planned unused capacity refers to the difference between practical capacity and budgeted capacity utilization that is intended or planned for. This means that the company purposely left some capacity unused in the budgeting process, in anticipation of future growth or changes in demand.

When There Are Significant Differences Between Practical Capacity and Budgeted