Ask Question
BusinessBusiness
17 May, 00:19

However, a capacity utilization rate that is nearing 100% is ... because ...

+2
Answers (1)
  1. 17 May, 00:23
    0
    A capacity utilization rate that is nearing 100% is ideal because it means that company's actual output is almost the same as its maximum possible output.

    Explanation:

    Capital utilization rate is used to calculate the rate at which levels of output are met. It is defined by the given formula:

    Capacity utilization = (Actual level of output / Maximum level of output) · 100

    If the Capacity utilization rate is near 100%, it means that actual level of output is almost same as the maximum level of output, which is considered as the Ideal rate.

    Ideal rate is usually not possible because there are a lot of hurdles in the processes. A rate of 85% is considered the optimal rate for most companies.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “However, a capacity utilization rate that is nearing 100% is ... because ... ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
The yield to maturity on 1-year zero-coupon bonds is currently 7.5%; the YTM on 2-year zeros is 8.5%. The Treasury plans to issue a 2-year maturity coupon bond, paying coupons once per year with a coupon rate of 10%.
Answers (1)
Major Construction & Manufacturing Corporation makes a side payment to a government official in India.
Answers (1)
When the demand curve shifts to the left, what is this called?
Answers (1)
A telephone company offers two services: landlines and Internet. There are two types of customer demographics for these services. One customer demographic values the Internet service at $40/month, but only values landlines at $10/month.
Answers (1)
what explores how market prices for individualgoods are determnined and how prices adjust to a variety of different events,?
Answers (1)
New Questions in Business
George and Weezy received $30,200 of Social Security benefits this year ($12,000 for George; $18,200 for Weezy). They also received $5,000 of interest from jointly owned City of Ranburne Bonds and dividend income.
Answers (1)
Which of the following is true regarding the high-tech industry today? a. It generally depends on a pool of low-skilled labor. b. It has led to the increased economic development of previously rural areas. c.
Answers (1)
Presented below are three receivables transactions. Indicate whether these receivables are reported as accounts receivable, notes receivable, or other receivables on a balance sheet. -Sold merchandise on account for $64,000 to a customer.
Answers (1)
Barans Realty Co. pays weekly salaries of $18,000 on Monday for a six-day workweek ending the preceding Saturday. Journalize the necessary adjusting entry at the end of the accounting period, assuming that the period ends on Friday.
Answers (1)
Montana Company was authorized to issue 200,000 shares of common stock. The company had issued 50,000 shares of stock when it purchased 10,000 shares of treasury stock.
Answers (1)
Home » Business » However, a capacity utilization rate that is nearing 100% is ... because ...
Sign Up Forgot Password?