Maximum possible production capacity of a plant when operating time is fully utilised is its:

CS Executive · Cost and Management Accounting · PYQS · June 2017
Maximum possible production capacity of a plant when operating time is fully utilised is its:
(A) Practical Capacity
(B) Theoretical Capacity
(C) Normal Capacity
(D) Capacity based on sale expectancy

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Capacity Management

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