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Fully Utilized Resources
In business terminology, a resource is something that you own, rent or otherwise control. It could be a building, equipment, personnel, skill-sets, etc. Regardless of the nature of the resource; it cost money. Businesses
are driven by the need to make the best use of the money they are
investing; therefore, any resource that is being paid for by a business is
constantly being evaluated to determine if the cost of the resource is more
than the value that resource is creating.
This excerpt taken from the TQNT 10-Q filed Nov 6, 2008.
Underutilization of our manufacturing facilities and additional capital expenditures may adversely affect our operating results. From time to time, we have underutilized our manufacturing lines. This excess capacity means we incur increased fixed costs in our products relative to the revenues we generate, which could have an adverse effect on our results moving forward.
un·der·uti·lize : to utilize less than fully or below the potential use -un·der·uti·li·za·tion
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