capacity utilisation Flashcards
(3 cards)
1
Q
what is capacity utilisation
A
the percentage of total capacity that is used
2
Q
capacity utilisation formula
A
(actual output/ capacity) x100
3
Q
why do businesses operate under 100 cap
A
-lower than expected market demand
- loss of market share
- seasonal variation of demand
-recent increase in capacity
-maintenance + repair programmes
