38 Capacity utilisation

Question 1

Define capacity utilisation and how to calculate it

Answer 1

capacity utilisation is the use that a business makes of its resources.

current output/maximum possible x 100

Question 2

Define under-utilisation

Answer 2

under utilisation is when a business is producing less than full capacity.

Question 3

Define over utilisation

Answer 3

over utilisation is when a business is running at full capacity and straining its resources.