20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

CAPAcity ratio

This topic has 5 replies, 2 voices, and was last updated 3 years ago by John Moffat.

Viewing 6 posts - 1 through 6 (of 6 total)

Author
Posts
August 24, 2021 at 8:27 am #632710
johnbriane
Member
- Topics: 170
- Replies: 160
Sir should the capacity ratio be greater than 100% ?
August 24, 2021 at 9:41 am #632724
John Moffat
Keymaster
- Topics: 57
- Replies: 54699
It could be higher or lower than 100%, but a company would want it to be 100% or more.
August 24, 2021 at 10:40 am #632727
johnbriane
Member
- Topics: 170
- Replies: 160
What’s the benefit of it’s higher than 100%
And will it always be a benefit for the company if the capacity ratio is greater than 100%
August 24, 2021 at 2:56 pm #632751
John Moffat
Keymaster
- Topics: 57
- Replies: 54699
Potentially if they get more labour then they are able to produce more.
August 24, 2021 at 5:47 pm #632782
johnbriane
Member
- Topics: 170
- Replies: 160
But then if there is no efficiency then it’s pointkess right sir ?
August 25, 2021 at 8:47 am #632832
John Moffat
Keymaster
- Topics: 57
- Replies: 54699
Yes, which is why they will consider all of the ratios.
Author
Posts

Viewing 6 posts - 1 through 6 (of 6 total)

You must be logged in to reply to this topic.