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Match each of the following numbered descriptions with one or more of the denominatorlevel capacity concepts by putting the appropriate letters by each item:
a Theoretical capacity
b Practical capacity
c Normal capacity utilization
d Masterbudget capacity utilization
Description
Measures the denominator level in terms of what a plant can supply
Is based on producing at full efficiency all the time
Represents the expected level of capacity utilization for the next budget period
Measures the denominator level in terms of demand for the output of the plant
Takes into account seasonal, cyclical, and trand fantnre
Concepts
Both a Theoretical capacity and b Practical capacity
a Theoretical capacity
a Theoretical capacity
c Normal capacity utilization
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