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"Capacity" [As Used in This Book] Refers to Your

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"Capacity" [as used in this book] refers to your


Definitions:

Operating Income

The profit realized from a business's operations after subtracting operating expenses from gross profit, indicating the efficiency of core business activities.

Absorption Costing

A costing method where all of the costs associated with manufacturing a product are absorbed by the units produced, including both variable and fixed manufacturing costs.

Operating Income

Earnings before interest and taxes (EBIT), representing the profit a company makes from its core operations.

Capacity

The maximum amount of work that an organization is capable of completing in a given period of time.

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