capacity

(noun)

The maximum that can be produced on a machine or in a facility or group.

Related Terms

  • capitalism
  • forecast

Examples of capacity in the following topics:

  • Adjusting Capacity

    • Capacity adjustment takes into account maximum production levels and the alteration of this level depending on how the firm wants to grow.
    • Capacity planning is the process of determining the production capacity needed by an organization to meet changing demands for its products.
    • In the context of capacity planning, "design capacity" is the maximum amount of work that an organization is capable of completing in a given period.
    • Capacity utilization is a concept in economics and managerial accounting that refers to the extent to which an enterprise or a nation actually uses its installed productive capacity.
    • Adjusting capacity will affect the amount of items produced on the assembly line.
  • Total Debt to Total Assets

    • In addition, high debt to assets ratio may indicate low borrowing capacity of a firm, which in turn will lower the firm's financial flexibility.
  • Defining the IRR

    • Investment may be limited by availability of funds to the firm and/or by the firm's capacity or ability to manage numerous projects.
  • Inventory Types

    • A queue leading to a production step shows that the step is well buffered for shortage in supplies from preceding steps, but may also indicate insufficient capacity to process the output from these preceding steps.
  • Setting a Credit Policy

    • Capacity: Will the borrower have enough cash flow to make its payments?
  • Inputs to COGS

    • Fixed production overheads are often allocated based on normal capacities or expected production.
  • ABC Technique

    • ., "Just- in- time") to avoid excess capacity.
  • Deflation

    • Since this idles the productive capacity, investment also falls, leading to further reductions in aggregate demand.
  • Overview of Warrants

    • Warrants are considered over-the-counter instruments, and thus are usually only traded by financial institutions with the capacity to settle and clear these types of transactions.
  • Assessing Internal Growth and Sustainability

    • Expansion may strain managers' capacity to monitor and handle the company's operations.
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