Final answer:
Capacity utilization of individual operations is a dangerous performance metric because it does not consider other important factors that impact a company's success.
Step-by-step explanation:
The statement that capacity utilization of individual operations is a dangerous performance metric is True. Capacity utilization measures how well a company is using its available resources to produce goods or services. However, focusing solely on capacity utilization can be risky because it does not take into account other factors such as demand fluctuations, quality issues, or operational inefficiencies.
For example, a company may have a high capacity utilization rate, but if there is a sudden drop in demand for their product, they may struggle to sell their inventory and end up with excess capacity.
Therefore, it is important for businesses to consider a range of performance metrics, including factors like customer satisfaction, quality control, and overall profitability, to get a comprehensive view of their operations.