PRACTICAL CAPACITY Definition

Bookmark and Share

PRACTICAL CAPACITY is where the cost of production is based on the practical capacity of production facilities. Therefore, the proportion of overheads allocated to a unit of production is not to be increased as consequence of idle capacity of the plant.

Learn new Accounting Terms

WORKING ASSET STATEMENT is a net worth statement minus any personal assets, the car, house, boat, etc. A working asset statement will give a clear picture of an individuals invested assets.

CASH COVERAGE RATIO see CASH DEBT COVERAGE RATIO.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.