capacity utilisation
What capacity utilisation means in Business A-Level, as defined for AQA.
Definitions of capacity utilisation
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Reference: AQA
Actual output divided by maximum possible output times one hundred, which a promotion that lifts orders can raise from perhaps sixty per cent towards ninety five per cent.
Actual output divided by maximum possible output and then multiplied by one hundred to give a percentage, telling you which problem the firm has.
Actual output divided by maximum possible output times one hundred, so expansion towards full stretch leaves no slack for a rush order.
Actual output divided by maximum possible output, multiplied by one hundred, expressed as a percentage.
Actual output divided by that maximum, multiplied by one hundred to give a percentage.
Actual output divided by maximum possible output, times one hundred.
Topics that use capacity utilisation
- Analysing operational performance (AQA A-Level)
- Assessing a change in scale (AQA A-Level)
- Making operational decisions to improve performance: increasing efficiency and productivity (AQA A-Level)
- Making operational decisions to improve performance: managing inventory and supply chains (AQA A-Level)
- Marketing management (AQA A-Level)
- Subject content (AQA A-Level)
Related terms
- functional interdependence
- gearing
- unit cost
- application to a named business
- average rate of return
- break-even output
- buffer stock
- capital intensive
Using capacity utilisation in the exam
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