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Productive capacity

Business Production rateProductive resources

productive capacity
the number of total units that could be
produced during a period based on available equipment time
productive processing time the proportion of total time that
is value-added time; also known as manufacturing cycle ...

 


Productive capacity capital maintenance is the concept that income results only after preserving physical capacity. If the closing net assets, usually measured in current replacement dollars, exceeds opening net assets, then income is present.

Economic earnings The real flow of cash that a firm could pay out forever in the absence of any change in the firm's productive capacity.

A firm’s productive capacity is the total level of output or production that it could produce in a given time period. Capacity utilisation is the percentage of the firm’s total possible production capacity that is actually being used.

165, by which the workers and salaried employees are entitled to " cooperate on equal terms with the employers in regulating conditions of work and wages and also in the whole economic development of productive capacity.

Importantly, the owners receive any profits or proceeds generated by the productive capacity that they own - sometimes in the form of dividends, other times in the form of profits being re-invested in the capacity that is owned.

Capital goods are those that form a nation's productive capacity, as opposed to consumer goods, which are bought for personal or household use.

For example, assume the ABC Company is planning to expand its productive capacity. The plan consists of purchasing a new machine for $50,000 and disposing of the old machine without receiving anything for it. The new machine has a five-year life.

Under the concept of physical capital maintenance when capital is defined in terms of the physical productive capacity, profit represents the increase in that capital over the period.

Investment produces real gains in efficiency, and purchases productive capacity - factories, machines and so on - which is also real.

In a more modern society, we allocate our productive capacity to producing pure consumer goods such as hamburgers and hot dogs, and investment goods such as semiconductor foundries.

charges (depreciation, depletion and amortization) minus debt and other fixed obligations net of tax savings on interest expense minus preferred dividends minus fixed capital expenditures needed to maintain the company's economic productive capacity ...

An investment made to acquire or increase the productive capacity of a country, eg in machinery, factory or business.
Disbursement
The release of loan funds by the World Bank or IMF to a borrower government.

The real flow of cash that a firm could pay out forever in the absence of any change in the firm's productive capacity.
Economic exposure
The extent to which the value of a firm will change because of an exchange rate change.

When an economy is growing too fast and its productive CAPACITY cannot keep up with DEMAND. It often boils over into INFLATION.
Overshooting ...

In the long term firms can increase productive capacity and increase the amount of capital.

Foreign Direct Investment (FDI) - The act of building productive capacity directly in a foreign country.
Foreign Equity Requirements - Investment rules that limit foreign ownership to a minority holding in a company.

Economic Earnings definition :
The real flow of cash that a firm could pay out forever in the absence of any change in the firm's productive capacity.
Want tight spreads?
FTSE, DAX, EUR-USD 1pt and WALL St, GBP-USD, 2pts ...

public infrastructure investment purchases of capital by government for use as public goods, which add to the productive capacity of the economy. (22) ...

Along with capital accumulation, the rate of innovation in an economy is crucial for expansion of its productive capacity and, hence, for its economic growth, improved standards of living, and international competitiveness.

units of production can be calculated as the number of units sold, plus the desired ending finished goods inventory, minus the beginning finished goods inventory. In planning production, one must give careful consideration to the productive capacity, ...

The outlook is that the company should grow faster than the economy and has increased its productive capacity but it does suffer during recession conditions. The company has only a modest debt level.

Investment in capital goods - Occurs when savings are used to increase the economy's productive capacity by financing the construction of new factories, machines, means of communication, and the like.

The aggregate of capital goods is a key determining factor of a country's productive capacity. Thus, a significant loss or international transfer of capital goods may signal a substantial economic decline.

See also: Expense, Banks, Operating profit, Debt service, Dependence

Business Production rateProductive resources

 
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