The capacity utilization rate is found by dividing best operating level by capacity used. Group of answer choices True False

False.

Explanation:

The given statement would be categorized as false as it asserts as inappropriate claim regarding the calculation of 'capacity utilization rate'. Capacity utilization rate aims to measure the literally realized proportion of potential/probable economic output. It is calculated by actual output being divided by the maximum possible output which is further multiplied by 100. Thus, it is written as:

{Capacity Utilization rate = " (Actual output/Maximum possible output) * 100"}

Therefore, the given statement would be categorized as false.