Q BankQuestion BankDocsDocuments

4.3.1—Capacity utilisation

Syllabus
9609–2026–2027
Objective
4.3.1
Level
AS

Capacity utilisation shows how much potential output is being used

Capacity utilisation is actual output as a percentage of maximum possible output over a stated period. It indicates spare capacity or pressure on resources.

Low utilisation can raise unit costs because fixed resources are underused; very high utilisation can create bottlenecks, overtime, quality problems and lost flexibility.

A clinic running at 70% capacity may accept new appointments, while at 100% it may need more rooms or staff rather than simply adding bookings.

Maximum capacity is an estimate under assumptions; utilisation alone does not reveal profitability or service quality.

ConceptA-Level CAIE Business AS