travisjones2912 travisjones2912
  • 04-02-2020
  • Business
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Utilization is defined as the ratio of effective capacity to design capacity. True or False

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asifali asifali
  • 04-02-2020

Answer:

False.

Explanation:

Utilization is the achieved output percentage of designed capacity. In other words, the designed or desired capacity to produce products and the actual products produced. It is calculated by Actual Output/Design Capacity. And it highlights that how much effective a company is in achieving the outcome which it intended.

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