Q30
Idle capacity of a plant refers to the difference between ________.
A.
maximum capacity and practical capacity
B.
practical capacity and normal capacity
C.
practical capacity and capacity based on sales expectancy
D.
maximum capacity and actual capacity
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Idle capacity of a plant refers to the difference between maximum capacity and actual capacity. Idle capacity is the remaining amount of capacity left in a company after productive capacity and protective capacity have been eliminated from consideration.