38 Capacity utilisation Flashcards
1
Q
Define capacity utilisation and how to calculate it
A
capacity utilisation is the use that a business makes of its resources.
current output/maximum possible x 100
2
Q
Define under-utilisation
A
under utilisation is when a business is producing less than full capacity.
3
Q
Define over utilisation
A
over utilisation is when a business is running at full capacity and straining its resources.
