Available hours refer to the total number of hours that can be allocated to complete a job, task, or process within an accounting period, expressed in terms of machine hours, direct labor hours, or production hours.
Budgeted capacity, also known as normal capacity, refers to the productive capacity available in an organization for a budget period as stipulated in the budget for that period. This may be expressed in terms of direct labor hours, machine hours, or standard hours, providing a crucial metric for organizational planning and resource allocation.
Production refers to the processes and methods employed to transform inputs (like raw materials, labor, and machinery) into finished products or services. The volume of production can be quantified in units, direct labor hours, machine hours, or direct labor costs.
Quantitative budgets refer to budgets that cover the non-financial aspects of budgetary control, including the number of units of products planned to be produced and the number of direct labor hours to be worked.
