 Financial Terms Accumulation bin

# Definition of Accumulation bin ## Accumulation bin

A location in which components destined for the shop floor are
accumulated before delivery.

# Related Terms:

## Bin

A storage area, typically a subdivision of a single level of a storage rack.

## Bin transfer

A transaction to move inventory from one storage bin to another.

## Binomial model

A method of pricing options or other equity derivatives in
which the probability over time of each possible price follows a binomial
distribution. The basic assumption is that prices can move to only two values
(one higher and one lower) over any short time period.

## Binomial option pricing model

An option pricing model in which the underlying asset can take on only two
possible, discrete values in the next time period for each value that it can take on in the preceding time period.

## Building a binomial tree

For a binomial option model: plotting the two
possible short-term price-changes values, and then the subsequent two values
each, and then the subsequent two values each, and so on over time, is known
as “building a binomial tree.” See binomial model.

## Combination matching

Also called horizon matching, a variation of multiperiod immunization and cash
flow matching in which a portfolio is created that is always duration matched and also cash-matched in the
first few years.

## Combination strategy

A strategy in which a put and with the same strike price and expiration are either both
bought or both sold. Related: Straddle ## cost accumulation

the approach to product costing that determines
which manufacturing costs are recorded as part
of product cost

## Daily Interest Accumulation

Account in which interest is accrued daily and credited to the account at the end of a specified time.

## Q ratio or Tobin's Q ratio

Market value of a firm's assets divided by replacement value of the firm's assets.
Quadratic programming Variant of linear programming whereby the equations are quadratic rather than linear.

## Robinson-Patman Act

a law that prohibits companies from pricing the same products at different amounts when those amounts do not reflect related cost differences

## Tobin's Q

Market value of assets divided by replacement value of assets. A Tobin's Q ratio greater than 1
indicates the firm has done well with its investment decisions.

## two-bin system

an inventory ordering system in which two
containers (or stacks) of raw materials or parts are available
for use; when one container is depleted, the removal
of materials from the second container begins and a purchase
order is placed to refill the first container

## Two-bin system

A system in which parts are reordered when their supply in one
storage bin is exhausted, requiring usage from a backup bin until the replenishment
arrives.