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When studying operation systems, is context switch time included in CPU utilization time? For example, if 5 percent of CPU time is wasted to context switching, is CPU utilization 95 percent?

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What is measured as "CPU utilization" is (time CPU working) / (total time). The overheads (like context switches) are part of the (time CPU working). So you might have 50% CPU utilization, of which 5% is context switch time.

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