Theoretical capacity reduced by normal and anticipated work stoppages is called
A) practical capacity.
B) normal capacity.
C) ideal capacity.
D) excess capacity.

Question

Quizplus · Accepted Answer

Practical capacity refers to the theoretical capacity of a system, reduced by normal and anticipated work stoppages such as maintenance, breaks, and vacations. This capacity takes into account the realistic limitations and interruptions that affect the production process and is useful in determining the actual amount of output that a system can produce within a given period. Normal capacity refers to the level of production that can be sustained over the long term without stress on the system, while ideal capacity represents the theoretical maximum capacity of a system, assuming no downtime or inefficiencies. Excess capacity refers to capacity that exceeds the level of output required to meet demand or the capacity that an organization possesses but is not currently using.

Theoretical Capacity Reduced by Normal and Anticipated Work Stoppages Is