Using a CPU usually means: how much of the real time is the processor doing some work. 90% of processor utilization means that the processor is 90% busy and 10% idle. When the CPU is in standby mode, it does nothing, and it just waits for interrupts.
In this view, it always includes caches and memory. A larger cache and faster memory will always make your processor faster in that sense.
Using 100% of the CPU means that the processes in total are related to the CPU. They will work faster if the processor is faster.
Using a CPU of less than 100% means that the processes are connected by the sum of I / O. They will not work faster if the processor runs faster.
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