Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: inventory control, payroll, finance, inventory, business, accounting, credit, stock trading,
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Definition of Enhancement
An innovation that has a positive impact on one or more of a firm's existing products.
Purchase of the financial guarantee of a large insurance company to raise funds.
an extension of activitybased costing using cost-benefit analysis (based on increased customer utility) to choose the product attribute
Methods of financing in which lenders and equity investors look principally to the
The tendency of stocks preferred by the dividend discount model to share certain equity
The requirement that a claim holder voting against a plan of reorganization
A method of analysis in which a firm is compared to others that have a desired
credit granted by a firm to consumers for the purchase of goods or services. Also called
The process of analyzing information on companies and bond issues in order to estimate the
The length of time for which the customer is granted credit.
The risk that an issuer of debt securities or a borrower may default on his obligations, or that the
A statistical technique wherein several financial characteristics are combined to form a single
The interest rate offered on an investment type insurance policy.
Lender of money.
Demand line of credit
A bank line of credit that enables a customer to borrow on a daily or on-demand basis.
Intermediate-term loans of Eurocurrencies made by banking syndicates to corporate and
Revolving credit without maturity.
Federal credit agencies
Agencies of the federal government set up to supply credit to various classes of
Five Cs of credit
Five characteristics that are used to form a judgement about a customer's creditworthiness:
Foreign tax credit
Home country credit against domestic income tax for foreign taxes paid on foreign
Full faith-and-credit obligations
The security pledges for larger municipal bond issuers, such as states and
Mortgage-backed securities (MBS) on which registered holders receive an aggregate principal and
Investment tax credit
Proportion of new capital investment that can be used to reduce a company's tax bill
Letter of credit (L/C)
A form of guarantee of payment issued by a bank used to guarantee the payment of
Line of credit
An informal arrangement between a bank and a customer establishing a maximum loan
Line of credit
An informal arrangement between a bank and a customer establishing a maximum loan
Modigliani and Miller Proposition II
A proposition by Modigliani and Miller which states that the cost of
credit granted by a firm to consumers for the purchase of goods or services.
Revolving credit agreement
A legal commitment wherein a bank promises to lend a customer up to a
Revolving line of credit
A bank line of credit on which the customer pays a commitment fee and can take
credit granted by a firm to another firm for the purchase of goods or services.
A method of costing in which all fixed and variable production costs are charged to products or services using an allocation base.
A method of budgeting that develops budgets based on expected activities and cost drivers â€“ see also activity-based costing.
A method of costing that uses cost pools to accumulate the cost of significant business activities and then assigns the costs from the cost pools to products or services based on cost drivers.
Buying or selling goods or services now with the intention of payment following at some time in
Purchases of goods or services from suppliers on credit to whom the debt is not yet paid. Or a
A method of accounting that accumulates the costs of a product/service that is produced either
An approach to costing that estimates and accumulates the costs of a product/service over
A budget that allocates funds in line with strategies.
A method of costing for continuous manufacture in which costs for an accounting compared are compared with production for the same period to determine a cost per unit produced.
A method of costing that is concerned with managing whole-of-life costs of a product/service during the product design phase â€“ the difference between target price (to achieve market share) and the target profit margin.
A variety of approaches that emphasize increasing shareholder value as the primary goal of every business.
A method of costing in which only variable production costs are treated as product costs and in which all fixed (production and non-production) costs are treated as period costs.
A method of budgeting that ignores historical budgetary allocations and identifies the costs that are necessary to implement agreed strategies.
One side of a journal entry, usually depicted as the right side.
activity based costing (ABC)
A relatively new method advocated for the
see activity-based costing
a cost accumulation and reporting
activity-based budgeting (ABB)
planning approach applying activity drivers to estimate the levels and costs of activities necessary to provide the budgeted quantity and
activity-based costing (ABC)
a process using multiple cost drivers to predict and allocate costs to products and services;
activity-based management (ABM)
a discipline that focuses on the activities incurred during the production/performance process as the way to improve the value received
a streamlined cost accounting method that speeds up, simplifies, and reduces accounting effort in an environment that minimizes inventory balances, requires
see variable costing
FIFO method (of process costing)
the method of cost assignment that computes an average cost per equivalent
see absorption costing
hybrid costing system
a costing system combining characteristics
job order costing system
a system of product costing used
life cycle costing
the accumulation of costs for activities that
manufacturing resource planning (MRP II)
a fully integrated materials requirement planning system that involves
modified FIFO method (of process costing)
the method of cost assignment that uses FIFO to compute a cost per
see manufacturing resource planning
process costing system
a method of accumulating and assigning costs to units of production in companies producing large quantities of homogeneous products;
a process that compares, to the extent possible
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
a method of determining what the cost of a
a cost accumulation and reporting method
weighted average method (of process costing)
the method of cost assignment that computes an average cost per
A methodology under which all manufacturing costs are assigned
Activity-based costing (ABC)
A cost allocation system that compiles costs and assigns
A costing methodology that only assigns direct labor and material costs
First in, first-out costing method (FIFO)
A process costing methodology that assigns the earliest
The process of continual cost reduction that occurs after a product
Manufacturing resource planning (MRP II)
An expansion of the material requirements planning concept, with additional computer-based capabilities in the areas of
A costing methodology that arrives at an individual product cost through the calculation of average costs for large quantities of identical products.
Procedure to determine the likelihood a customer will pay its bills.
Standards set to determine the amount and nature of credit to extend to customers.
line of credit
Agreement by a bank that a company may borrow at any time up to an established limit.
MM's proposition II
The required rate of return on equity increases as the firmâ€™s debt-equity ratio increases.
A decline in the ability or willingness of banks to lend.
Restriction of loans by lenders so that not all borrowers willing to pay the current interest rate are able to obtain loans.
Investment Tax Credit
A reduction in taxes offered to firms to induce them to increase investment spending.
A test used to determine the status of an employee under a state unemployment
Consumer Credit Protection Act
A federal Act specifying the proportion of
Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (IIRIRA)
A federal Act shielding employers from liability if they have made
ABC inventory classification
A method for dividing inventory into classifications,
Creditor Proof Protection
The creditor proof status of such things as life insurance, non-registered life insurance investments, life insurance RRSPs and life insurance RRIFs make these attractive products for high net worth individuals, professionals and business owners who may have creditor concerns. Under most circumstances the creditor proof rules of the different provincial insurance acts take priority over the federal bankruptcy rules.
Loans granted usually by a financial institution where the asset being financed constitutes the sole security given to the lender.
A rating of a company's credit (ability to payback debt), usually by a third party credit agency.
A loan receivable that has proven uncollectible and is written off.
Financial and moral risk that an obligation will not be paid and a loss will result.
Conditions under which credit is extended by a lender to a borrower.
credit unions are community based financial co-operatives and most offer a full range of services. All are owned and controlled by members who are also shareholders. credit unions are regulated provincially and insured by a stabilization fund, deposit insurance or guarantee corporation.
Person or business that is owed money.
Export Credit Insurance
The granting of insurance to cover the commercial and political risks of selling in foreign markets.
Formalized Line of Credit
A contractual commitment to make loans to a particular borrower up to a specified maximum during a specified period, usually one year.
Full Credit Period
The period of trade credit given by a supplier to its customer.
Letters of Credit
A letter of credit is a guarantee of payment by a bank (issuing institution)to a third party for a specific amount of money, if certain conditions are met.
Line of Credit
An agreement negotiated between a borrower and a lender which establishes the maximum amount against which a borrower may draw. The agreement also sets out other conditions, such as how and when money borrowed against the line of credit is to be repaid.
Operating Line of Credit
A bank's commitment to make loans to a particular borrower up to a specified maximum for a specified period, usually one year.
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