Question: Match the terms below on the left with the correct description on the right. Term Theoretical capacity Practical capacity Normal utilisation Master - budget utilisation
Match the terms below on the left with the correct description on the right.
Term
Theoretical capacity
Practical capacity
Normal utilisation
Masterbudget utilisation
Description
is the capacity allowing for normal interruptions such as scheduled maintenance, shutdowns for holidays, lunch breaks etc
is an assumption of the anticipated level of capacity utilisation for the next budget period
is based on production being at full efficiency all of the time.
is based on assumption that the level of capacity utilisation satisfies average demand over the mediumlonger term includes taking into account seasonal, cyclical or other factors
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