In the modern theory of cost, the level of utilisation of the plant that is considered as normal is…
The load factor is the level of plant utilisation regarded as normal in modern cost theory. Reserve capacity refers to capacity held available beyond normal use, while…
Choose your answer
In the modern theory of cost, the level of utilisation of the plant that is considered as normal is known as:
Answer and explanation
Correct answer C
The load factor is the level of plant utilisation regarded as normal in modern cost theory. Reserve capacity refers to capacity held available beyond normal use, while excess capacity concerns unused productive potential.
Practice for these exams
-
Jammu & Kashmir and Ladakh SET (JKSET/LASET)