[amp_mcq option1=”maximum capacity and practical capacity” option2=”practical capacity and normal capacity” option3=”practical capacity and capacity based on sales expectancy” option4=”maximum capacity and actual capacity” correct=”option4″]
The correct answer is: D. maximum capacity and actual capacity.
Idle capacity is the difference between the maximum capacity of a plant and the actual capacity that is being used. Maximum capacity is the theoretical maximum output that a plant can produce, while actual capacity is the actual output that is being produced. Idle capacity can occur for a number of reasons, such as machine downtime, absenteeism, or poor planning.
Option A is incorrect because practical capacity is the maximum output that can be achieved on a regular basis, taking into account factors such as machine downtime and absenteeism.
Option B is incorrect because normal capacity is the average output that is expected to be produced over a period of time.
Option C is incorrect because capacity based on sales expectancy is the output that is required to meet sales expectations.
I hope this helps!