Capacity utilisation Flashcards

1
Q

What is capacity utilisation?

A

The extent to which the maximum capacity for output that is being used

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2
Q

What is capacity utilisation equation?

A

current output/ max possible output x 100

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3
Q

What are three ways to improve capacity utilisation?

A
  • reduce staff
  • move to smaller premises
  • sell unused fixed assets
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