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Financial Terms | |
Completed-Contract Method |
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Definition of Completed-Contract MethodCompleted-Contract MethodA contract accounting method that recognizes contract revenue
Related Terms:algebraic methoda process of service department cost allocation Allowance methodA method of adjusting accounts receivable to the amount that is expected to be collected based on company experience. Average-Cost Inventory MethodThe inventory cost-flow assumption that assigns the average Benefit Ratio MethodThe proportion of unemployment benefits paid to a company’s Benefit Wage Ratio MethodThe proportion of total taxable wages for laid off Bootstrapping, bootstrap methodAn arithmetic method for backing an Bullet contractA guaranteed investment contract purchased with a single (one-shot) premium. Related: ![]() Capitalization methodA method of constructing a replicating portfolio in which the manager purchases a Cash settlement contractsFutures contracts, such as stock index futures, that settle for cash, not involving Conditional sales contractsSimilar to equipment trust certificates except that the lender is either the ContractA term of reference describing a unit of trading for a financial or commodity future. Also, the actual ContractA formal written statement of the rights and obligations of each party to a transaction. Contract Accountingmethod of accounting for sales or service agreements where completion contract manufactureran external party that has been granted an outsourcing contract to produce a part or component for an entity Contract monthThe month in which futures contracts may be satisfied by making or accepting a delivery. contract vendoran external party that has been granted an ![]() Contract Work Hours and Safety Standards ActA federal Act requiring federal contractors to pay overtime for hours worked exceeding 40 per week. cost-plus contracta contract in which the customer agrees Current rate methodUnder this currency translation method, all foreign currency balance-sheet and income Direct estimate methodA method of cash budgeting based on detailed estimates of cash receipts and cash Direct methodA method of preparing the operating section of the Statement of Cash Flows that uses the company’s actual cash inflows and cash outflows. direct methoda service department cost allocation approach Direct-Method FormatA format for the operating section of the cash-flow statement that reports actual cash receipts and cash disbursements from operating activities. Direct write-off methodA method of adjusting accounts receivable to the amount that is expected to be collected by eliminating the account balances of specific nonpaying customers. dividend growth methoda method of computing the cost Equity MethodAccounting method for an equity security in cases where the investor has sufficient FIFO method (of process costing)the method of cost assignment that computes an average cost per equivalent ![]() First in, first-out costing method (FIFO)A process costing methodology that assigns the earliest First-In, First-Out (FIFO) Inventory MethodThe inventory cost-flow assumption that Floating-rate contractA guaranteed investment contract where the credit rating is tied to some variable Flow-through methodThe practice of reporting to shareholders using straight-line depreciation and Forward contractA cash market transaction in which delivery of the commodity is deferred until after the forward contractAgreement to buy or sell an asset in the future at an agreed price. Forward forward contractIn Eurocurrencies, a contract under which a deposit of fixed maturity is agreed to Full-Cost MethodA method of accounting for petroleum exploration and development expenditures Futures contractAgreement to buy or sell a set number of shares of a specific stock in a designated future futures contractExchange-traded promise to buy or sell an asset in the future at a prespecified price. Futures ContractA contract in which the seller agrees to provide something to a buyer at a specified future date at an agreed price. Futures contract multipleA constant, set by an exchange, which when multiplied by the futures price gives Guaranteed insurance contractA contract promising a stated nominal interest rate over some specific time Guaranteed investment contract (GIC)A pure investment product in which a life company agrees, for a Hell-or-high-water contractA contract that obligates a purchaser of a project's output to make cash high-low methoda technique used to determine the fixed Implicit ContractAn unwritten understanding between two groups, such as an understanding between an employer and employees that employees will receive a stable wage despite business cycle activity. Indirect methodA method of preparing the operating section of the Statement of Cash Flows that does not use the company’s actual cash inflows and cash outflows, but instead arrives at the net cash flow by taking net income and adjusting it for noncash expenses and the changes from last year in the current assets and current liabilities. Indirect-Method FormatA format for the operating section of the cash-flow statement that judgmental method (of risk adjustment)an informal method of adjusting for risk that allows the decision maker Last-In, First-Out (LIFO) Inventory MethodThe inventory cost-flow assumption that assigns the most recent inventory acquisition costs to cost of goods sold. The earliest inventory Log-linear least-squares methodA statistical technique for fitting a curve to a set of data points. One of the McNamara-O'Hara Service Contract Act of 1965A federal Act requiring federal contractors to pay those employees working on a federal contract at method of least squaressee least squares regression analysis method of neglecta method of treating spoiled units in the modified FIFO method (of process costing)the method of cost assignment that uses FIFO to compute a cost per Monetary / non-monetary methodUnder this translation method, monetary items (e.g. cash, accounts Most distant futures contractWhen several futures contracts are considered, the contract settling last. Moving average inventory methodAn inventory costing methodology that calls for the re-calculation of the average cost of all parts in stock after every purchase. Nearby futures contractWhen several futures contracts are considered, the contract with the closest net present value methoda process that uses the discounted Net Present Value (NPV) MethodA method of ranking investment proposals. NPV is equal to the present value of the future returns, discounted at the marginal cost of capital, minus the present value of the cost of the investment. Next futures contractThe contract settling immediately after the nearby futures contract. Nexus (of contracts)A set or collection of something. Normalizing methodThe practice of making a charge in the income account equivalent to the tax savings Open contractscontracts which have been bought or sold without the transaction having been completed by Optimal contractThe contract that balances the three types of agency costs (contracting, monitoring, and Options contractA contract that, in exchange for the option price, gives the option buyer the right, but not Options contract multipleA constant, set at $100, which when multiplied by the cash index value gives the Payback methodA capital budgeting analysis method that calculates the amount of Percentage-of-Completion MethodA contract accounting method that recognizes contract Purchase methodAccounting for an acquisition using market value for the consolidation of the two entities' Purchase methodAn accounting method used to combine the financial statements of Residual methodA method of allocating the purchase price for the acquisition of another firm among the risk-adjusted discount rate methoda formal method of adjusting for risk in which the decision maker increases the rate used for discounting the future cash flows to compensate for increased risk Set of contracts perspectiveView of corporation as a set of contracting relationships, among individuals Simple compound growth methodA method of calculating the growth rate by relating the terminal value to simplex methodan iterative (sequential) algorithm used to solve multivariable, multiconstraint linear programming problems six-sigma methoda high-performance, data-driven approach to analyzing and solving the root causes of business problems Statement-of-cash-flows methodA method of cash budgeting that is organized along the lines of the statement of cash flows. step methoda process of service department cost allocation strict FIFO method (of process costing)the method of cost assignment that uses FIFO to compute a cost per equivalent unit and, in transferring units from a department, keeps the Successful Efforts MethodA method of accounting for petroleum exploration and development Take-or-pay contractA contract that obligates the purchaser to take any product that is offered to it (and pay Temporal methodUnder this currency translation method, the choice of exchange rate depends on the Turnkey construction contractA type of construction contract under which the construction firm is units started and completedthe difference between the number of units completed for the period and the units in beginning inventory; it can also be computed as the number of units started during the period minus the units in ending inventory Walsh-Healey Public Contracts Act of 1936A federal Act that forces government contractors to comply with the government’s minimum wage and hour rules. weighted average method (of process costing)the method of cost assignment that computes an average cost per Window contractA guaranteed investment contract purchased with deposits over some future designated Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |