Define: Capacity

UK Accounting Glossary

Definition: Capacity

Quick Summary of Capacity

What is the dictionary definition of Capacity?

Dictionary Definition

  1. General: The specific ability of an entity (person or organisation) or resource, measured in quantity and level of quality, over an extended period.
  2. Banking: A Borrower’s ability to repay a debt on a timely basis, determined by deducting total cash outflows from the borrower’s total income during (typically) a month.
  3. Law: The Legal ability of an entity (person or organisation) to perform an act, such as creating a binding contract.
  4. Manufacturing: The highest sustainable rate of output (maximum number of units per month, quarter, or year) that can be achieved with current resources, maintenance strategies, product specifications, etc.


  1. The ability to hold, receive or absorb
  2. A measure of such ability; volume
  3. The maximum amount that can be held


Full Definition of Capacity


Capacity FAQ's

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Capacity. Payroll & Accounting Heaven Ltd. November 22, 2019
Chicago Manual of Style (CMS):
Capacity. Payroll & Accounting Heaven Ltd. (accessed: November 22, 2019).
American Psychological Association (APA):
Capacity. Retrieved November 22, 2019, from website:

Definition Sources

Definitions for Capacity are sourced/syndicated from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 30th September 2019.