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:
“What, then, is the basic difference between today’s computer and an intelligent being? It is that the computer can be made to see but not to perceive. What matters here is not that the computer is without consciousness but that thus far it is incapable of the spontaneous grasp of pattern—a capacity essential to perception and intelligence.”
—Rudolf Arnheim (b. 1904)