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Match each of the following items with one or more of the denominator-level capacity concepts by putting the appropriate letter(s) by each item: a. Theoretical
Match each of the following items with one or more of the denominator-level capacity concepts by putting the appropriate letter(s) by each item: a. Theoretical capacity b. Practical capacity c. Normal capacity utilization d. Master-budget capacity utilization 1. Reduces theoretical capacity by considering unavoidable operating interruptions 2. Producing at full efficiency all the time. 3. Measures capacity levels in terms of demand 4. Level of capacity utilization the satisfies average customer demand over a period 5. Does not allow for plant maintenance 6. Engineering and human resource factors are important when estimating capacity. 7. Level of capacity utiiization that managers expect for the current budget period. 8. Ideal goal of capacity utilization 9. Takes into account seasonal cyclical and trend factors. 10. Measures capacity levels in terms of what a plant can supply
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