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Which of the Following Statements Is True About Capacity Utilization

Question 85

Multiple Choice

Which of the following statements is true about capacity utilization?


A) It is the extent to which the capacity designed and installed is actually used.
B) It is the capacity required to be utilized to meet market demand.
C) It is calculated by dividing actual output by effective capacity.
D) It is the ratio of design capacity to effective capacity.

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