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.