Question: Practical capacity is the denominator-level concept that is based on the level of capacity utilization that satisfies average customer demand over periods generally longer than

Practical capacity is the denominator-level concept that

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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