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Nonproductive Capacity

 
Accounting Dictionary: Nonproductive Capacity

Capacity that is useable but is temporarily in a nonproductive state due to setups, scheduled downtime, unscheduled downtime or rework (repeating production because the first run came out wrong, or discarding materials rendered unusable after an unsuccessful run).

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Accounting Dictionary. Dictionary of Accounting Terms. Copyright © 2005 by Barron's Educational Series, Inc. All rights reserved.  Read more