Which of the following is the realistic measure of what an organization is likely to produce,not what it can produce?
A)Practical capacity
B)Normal capacity
C)Ideal capacity
D)Excess capacity

Question

Quizplus · Accepted Answer

Normal capacity represents the realistic measure of what an organization is likely to produce given the limiting factors such as resources, labor, demand, etc. It considers the practical limitations faced by the organization and therefore provides a more accurate estimate of what can be produced rather than what optimal (ideal) or maximum (excess) production capacity could be if all factors were optimal.

Which of the Following Is the Realistic Measure of What