Asked by Cheng Tso Hsieh on May 11, 2024
Verified
Lower utilization rates are considered favorable, while higher utilization rates are considered unfavorable.
Utilization Rates
The ratio of actual time used to the potential time available for production, indicating the efficiency of resource use.
- Know the various types of costs associated with manufacturing (direct materials, direct labor, factory overhead).
Verified Answer
BE
Bakhita El-SandaliMay 12, 2024
Final Answer :
False
Explanation :
Higher utilization rates are generally considered favorable as they indicate that a company is making efficient use of its resources. Lower utilization rates may suggest underused capacity or inefficiency.
Learning Objectives
- Know the various types of costs associated with manufacturing (direct materials, direct labor, factory overhead).
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