Which of the following statements is true about capacity utilization?

a. It is the extent to which the capacity designed and installed is actually used.
b. It is the capacity required to be utilized to meet market demand.
c. It is calculated by dividing actual output by effective capacity.
d. It is the ratio of design capacity to effective capacity.


a. It is the extent to which the capacity designed and installed is actually used.

Business

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Indicate whether the statement is true or false

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Income tax expense in interim reporting should:

a. be based on the quarterly income only. b. contain a judgment estimation of the annual effective tax rate. c. be based on the income year-to-date. d. exclude extraordinary items in earlier quarters of the year. e. disregard year-end adjustments.

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The use of the relative frequency method to develop discrete probability distributions leads to what is called a _____ discrete distribution.

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Indicate whether the statement is true or false

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