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Excess Capacity
A situation where a company's production facilities are capable of producing more than the demand for its products or services.
Direct Expenses
Costs that can be directly attributed to the production of specific goods or services, such as raw materials and direct labor.
Excess Capacity
The situation where a company can produce more goods or services than currently demanded, indicating underutilization of resources.
Opportunity Cost
The cost of foregoing the next best alternative when making a decision or choosing one option over another.
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