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 terrifying message of gay liberation is that men are capable of loving their brothers. It should be sweet news to every woman in the world, for, if the capacity of men to love whom they have been taught to treat as competitors and enemies can transcend their education, the world can begin to heal.”
—Jane Rule (b. 1931)