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Investments glossary

Excess Capacity


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Quotes of the day:

Truth may be stretched, but cannot be broken, and always gets above falsehood, as does oil above water.

— Miguel Cerbantes

Excess capacity is a condition that occurs when demand for a product is less than the amount of product that a business could potentially supply to the market. When a firm is producing at a lower scale of output than it has been designed for, it creates excess capacity.

Transfer Pricing (with Excess Capacity)
Transfer Pricing (with Excess Capacity)
Title
Transfer Pricing (with Excess Capacity)
Runtime
4:53
View count
20,383
Date posted
Dec 5, 2018
ACCT364 - Allocating the Cost of Excess Capacity NAC Example
Title
ACCT364 - Allocating the Cost of Excess Capacity NAC Example
Runtime
8:33
View count
87
Date posted
Mar 27, 2020
Transfer Pricing (No Excess Capacity)
Title
Transfer Pricing (No Excess Capacity)
Runtime
6:35
View count
29,412
Date posted
Dec 6, 2018

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