Business & ManagementIB

Capacity utilisation

Capacity utilization is a metric that measures how much of a company’s production capacity is actually being used to produce goods and services. More specifically, capacity utilization measures the relationship between actual production...
Capacity utilisation

Capacity utilisation the use that a business makes from its resources. If a business is not able to increase output, it is said to be running at full capacity (100%).

Capacityutilisation= Actualoutput Productivecapacity ×100


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