Practical capacity is the denominator-level concept that is based on the level of capacity utilization that satisfies
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is based on the level of capacity utilization that satisfies average customer demand over periods generally longer than one year
is the maximum level of operations at maximum efficiency
reduces theoretical capacity for unavoidable operating interruptionsis based on anticipated levels of capacity utilization for the coming budget period
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Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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