Excess capacity adjustment
Excess capacity adjustment is a change made to the existing asset forecast because the firm is operating at excess capacity.
Definitions
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Excess capacity adjustments. Changes made to the existing asset forecast because the firm is not operating at full capacity.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
