Essay
Match each of the denominator-level capacity concepts (a-d)to the following descriptor items (1-10)by putting the appropriate letter(s)by each item:
a.Theoretical capacity
b.Practical capacity
c.Normal capacity utilisation
d.Budgeted capacity utilisation
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 utilisation that 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 utilisation that managers expect for the current budget period
8.Ideal goal of capacity utilisation
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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Correct Answer:

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1.b
2.a
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Correct Answer:
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2.a
3....
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