2.4.2 Capacity Utilisation Quiz

What is the formula for calculating capacity utilisation?

• Current output / Maximum possible output x 100

• Maximum possible output / Current output x 100

• Current output x Maximum possible output

• Maximum possible output - Current output

What is the capacity utilisation if a printing operation prints 9,000 leaflets out of a possible 10,000?

• 80%

• 90%

• 70%

• 100%

What is the implication of under-utilisation for a business?

• Increased efficiency

• Higher costs per unit

• Lower costs per unit

• Full resource utilisation

What is the capacity utilisation percentage when a business is operating at full capacity?

• 50%

• 75%

• 100%

• 90%

What might cause a business to under-utilise its capacity?

• Increase in demand

• Drop in demand

• Full employment of resources

• High competition

Why might a business choose to operate below full capacity?

• To increase costs

• To maintain flexibility

• To reduce output

• To lose customers

What is the effect of spreading fixed costs over more units of output?

• Increased unit cost

• Decreased unit cost

• No change in unit cost

• Increased total cost

What is the potential output at full capacity called?

• Current output

• Maximum possible output

• Average output

• Minimum output

What is the capacity utilisation if a business operates at 60% of its full capacity?

• 40%

• 60%

• 100%

• 90%

What is the capacity utilisation if a business operates at 50% of its full capacity?

• 50%

• 60%

• 100%

• 90%