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
Answer: Option D
Solution (By Examveda Team)
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.
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