Which of the Following Best Describes Practical Capacity

Multiple Choice

Which of the following best describes practical capacity?

A) It is the level of capacity that reduces theoretical capacity by considering unavoidable operating interruptions, such as scheduled maintenance time and shutdowns for holidays.
B) It is the level of capacity based on producing at full efficiency all the time.
C) It is the level of capacity utilization that satisfies average customer demand over a period that includes seasonal, cyclical, and trend factors.
D) It is the level of capacity utilization that managers expect for the current budget period, which is typically one year.