Capacity utilization is a concept in economics and managerial accounting which refers to the extent to which an enterprise or a nation actually uses its installed productive capacity. Thus, it refers to the relationship between actual output that 'is' produced with the installed equipment and the potential output which 'could' be produced with it, if capacity was fully used.
Read more about Capacity Utilization: Economic Significance, Measurement, Engineering and Economic Measures, Output Gap Percentage Formula, FRB and ISM Utilization Indexes, Data
Famous quotes containing the word capacity:
“The frequent failure of men to cultivate their capacity for listening has a profound impact on their capacity for parenting, for it is mothers more than fathers who are most likely to still their own voices so they may hear and draw out the voices of their children.”
—Mary Field Belenky (20th century)