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
Nelson, the CEO of a company, holds a meeting with the board of directors that includes both male and female members.
Answers (1)
Which factor increases the risk of IS project delays? A. loss of hardware B. shortage of technical staff C. poor password practices D. loss of equipment E. environmental issue
Answers (2)
Describe the American experience with crime during the last half century. What noteworthy criminal incidents or activities can you identify during that time, and what social and economic conditions might have produced them?
Answers (1)
The application of resolution and stimulation techniques to achieve the optimum level of departmental conflict is called a. conflict management b. reengineering of the work process c. human resource management d. division of labor
Answers (1)
Should a company alter its marketing campaigns to reflect biases that might be prevalent in various countries in which the company does business?
Answers (1)
New Questions in Business
Larry's lizards and ronaldo's reptiles are competing pet store franchises. both are considering opening a store in the small town of turtleville.
Answers (1)
How does the government of a republic typically shape its economy? A. The government allows citizens to own private businesses. B. The government blocks the ownership of personal property. C. The government owns all homes and other forms of housing.
Answers (1)
For a business credit card, most companies that issue credit, including Visa and Mastercard, specifically state their liability policies: Only cover the first $50.
Answers (1)
In the resource-based view of the firm, examples of tangible resources include: Select one: a. outstanding customer service, innovativeness of products, and reputation b.
Answers (1)
Off-Line Co. has 9,000 units in beginning finished goods. The sales budget shows expected sales to be 36,000 units. If the production budget shows that 42,000 units are required for production, what was the desired ending finished goods?
Answers (1)
Home » Business » However, a capacity utilization rate that is nearing 100% is ... because ...
Sign Up Forgot Password?