Difference between revisions of "Excess capacity adjustment"

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Revision as of 04:00, 2 November 2019

Excess capacity adjustment is a change made to the existing asset forecast because the firm is not operating at full 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.

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