Answer :
Answer:
B. actual output divided by effective capacity.
Explanation:
The efficiency shows a relationship between the actual output and the input. It is shown as a ratio
In mathematically,
Efficiency = Actual output ÷ effective capacity
The motive is to determine the efficiency is to know how much it produced the number of units produced by reducing the wastage, cost, time, etc
The formula for Efficiency is given as the actual output divided by effective capacity.
Basically, an efficiency shows the relationship between the actual output and the effective capacity.
In other word, the efficiency refers to the actual output as a percentage of the efficient capacity that a firm can achieve.
Mathematically, an efficiency equals Actual output divided by effective capacity
Hence, the Actual output divided by effective capacity is the correct answer.
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