GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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actual input/productive capacity X 100
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estimated ouput/productive capacity X 100
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estimated input/productive capacity X 100
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actual output/productive capacity X 100
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Detailed explanation-1: -Capacity utilization is calculated using a formula: the rate of capacity utilization is equal to the ratio of the actual level of output over the maximum level of output multiplied by a hundred percent. That is, capacity utilization rate = actual output/optimal output.
Detailed explanation-2: -When you get the capacity utilization rate, you can interpret the value based on the notion that 100% is full operational capacity. If the capacity utilization rate is less than 100%, it indicates companies are operating at less than full capacity. Rates above 100% indicate operations are over capacity.
Detailed explanation-3: -The utilization rate formula is defined as: Billable Utilization % = (Number of Billable Hours / Number of Available Hours) X 100%.
Detailed explanation-4: -Answer and Explanation: Any utilization which is on par with the normal capacity of the organization is treated as ideal utilization. It is possible to have an ideal utilization rate of more than 100%. It happens when performance is more than standard.