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Financial Terms | |
Hybrid |
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Definition of HybridHybridA package containing two or more different kinds of risk management instruments that are usually
Related Terms:hybrid costing systema costing system combining characteristics Hybrid securityA convertible security whose optioned common stock is trading in a middle range, causing Bundling, unbundlingA trend allowing creation of securities either by combining primitive and derivative limited liability companyan organizational form that is a hybrid of the corporate and partnership organizational limited liability partnershipan organizational form that is a hybrid of the corporate and partnership organizational Pecking-order view (of capital structure)The argument that external financing transaction costs, especially SyntheticsCustomized hybrid instruments created by blending an underlying price on a cash instrument with ![]() Absorption costingA method of costing in which all fixed and variable production costs are charged to products or services using an allocation base. absorption costinga cost accumulation and reporting Absorption costingA methodology under which all manufacturing costs are assigned Accelerated cost recovery system (ACRS)Schedule of depreciation rates allowed for tax purposes. Accounting systemA set of accounts that summarize the transactions of a business that have been recorded on source documents. Activity-based costingA 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. activity based costing (ABC)A relatively new method advocated for the activity-based costing (ABC)a process using multiple cost drivers to predict and allocate costs to products and services; Activity-based costing (ABC)A cost allocation system that compiles costs and assigns ![]() actual cost systema valuation method that uses actual direct Asset-backed securityA security that is collateralized by loans, leases, receivables, or installment contracts attribute-based costing (ABC II)an extension of activitybased costing using cost-benefit analysis (based on increased customer utility) to choose the product attribute Automated storage/retrieval systemA racking system using automated systems Available-for-Sale SecurityA debt or equity security not classified as a held-to-maturity security or a trading security. Can be classified as a current or noncurrent investment depending on the intended holding period. backflush costinga streamlined cost accounting method that speeds up, simplifies, and reduces accounting effort in an environment that minimizes inventory balances, requires business intelligence (BI) systema formal process for gathering and analyzing information and producing intelligence to meet decision making needs; requires information about charge-back systema system using transfer prices; see transfer Clearing House Automated Payments System (CHAPS)A computerized clearing system for sterling funds Clearing House Interbank Payments System (CHIPS)An international wire transfer system for high-value Convertible securityA security that can be converted into common stock at the option of the security holder, ![]() cost control systema logical structure of formal and/or informal cost management system (CMS)a set of formal methods Debt SecurityA security representing a debt relationship with an enterprise, including a government Derivative securityA financial security, such as an option, or future, whose value is derived in part from the direct costingsee variable costing Direct costingA costing methodology that only assigns direct labor and material costs Du Pont systemA breakdown of ROE and ROA into component ratios. Dupont system of financial controlHighlights the fact that return on assets (ROA) can be expressed in terms Electronic Federal Tax Payment Systems (EFTPS)An electronic funds transfer system used by businesses to remit taxes to the government. Employee Retirement Income Security Act of 1974 (ERISA)A federal Act that sets minimum operational and funding standards for employee benefit enterprise resource planning (ERP) systema packaged software program that allows a company to Enterprise resource planning systemA computer system used to manage all company Equity SecurityAn ownership interest in an enterprise, including preferred and common stock. European Monetary System (EMS)An exchange arrangement formed in 1979 that involves the currencies Exchangeable Securitysecurity that grants the security holder the right to exchange the security for the Federal Reserve SystemThe central bank of the U.S., established in 1913, and governed by the Federal Federal Reserve SystemThe central banking authority responsible for monetary policy in the United States. 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 Fixed-dollar securityA nonnegotiable debt security that can be redeemed at some fixed price or according to Fixed-income securityA security that pays a specified cash flow over a flexible manufacturing system (FMS)a production system in which a single factory manufactures numerous variations floating-rate securitysecurity paying dividends or interest that vary with short-term interest rates. full costingsee absorption costing Held-to-Maturity SecurityA debt security for which the investing entity has both the positive Host securityThe security to which a warrant is attached. Imputation tax systemArrangement by which investors who receive a dividend also receive a tax credit for Interac systemCanada's bank machine and electronic debit system. If you use your bank card at a bank machine which displays the Interac symbol (and that bank machine is not your bank's machine), you will be charged a fee. Job costingA method of accounting that accumulates the costs of a product/service that is produced either job order costing systema system of product costing used Just-in-time inventory systemssystems that schedule materials/inventory to arrive exactly as they are just-in-time manufacturing systema production system that attempts to acquire components and produce inventory only as needed, to minimize product defects, and to Kaizen costingThe process of continual cost reduction that occurs after a product life cycle costingthe accumulation of costs for activities that Lifecycle costingAn approach to costing that estimates and accumulates the costs of a product/service over lock-box systemsystem whereby customers send payments to a post office box and a local bank collects and processes checks. MACRS (Modified Accelerated Cost Recovery System)A depreciation method created by the IRS under the Tax Reform Act of 1986. Companies must use it to depreciate all plant and equipment assets installed after December 31, 1986 (for tax purposes). management control system (MCS)an information system that helps managers gather information about actual organizational occurrences, make comparisons against plans, management information system (MIS)a structure of interrelated elements that collects, organizes, and communicates Marketable securityAn easily traded investment, such as treasury bills, which is Modified Accelerated Cost Recovery System (MACRS)Depreciation method that allows higher tax deductions in early years and lower deductions later. modified FIFO method (of process costing)the method of cost assignment that uses FIFO to compute a cost per Monthly income preferred security (MIP)Preferred stock issued by a subsidiary located in a tax haven. Mortgage pass-through securityAlso called a passthrough, a security created when one or more mortgage Multirule systemA technical trading strategy that combines mechanical rules, such as the CRISMA Nonmarketable SecurityA debt or equity security for which there is no posted price or bidand- Nonsystematic riskNonmarket or firm-specific risk factors that can be eliminated by diversification. Also normal cost systema valuation method that uses actual Overdraft Systemsystem whereby a depositor may write cheques in excess of the balance, with the bank automatically extending a loan to cover the shortage. performance management systema system reflecting the entire package of decisions regarding performance measurement and evaluation Periodic inventory systemAn inventory system in which the balance in the Inventory account is adjusted for the units sold only at the end of the period. Perpetual inventory systemAn inventory system in which the balance in the Inventory account is adjusted for the units sold each time a sale is made. Planning, programming and budgeting system (PPBS)A method of budgeting in which budgets are allocated to projects or programmes rather than to responsibility centres. PLUS systemA bank machine network outside Canada, across the U.S. and internationally. Customers who use a bank machine with a 'PLUS' symbol may be charged a fee. Price SystemSee market mechanism. Primitive securityAn instrument such as a stock or bond for which payments depend only on the financial Process costingA 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. Process costingA costing methodology that arrives at an individual product cost through the calculation of average costs for large quantities of identical products. process costing systema method of accumulating and assigning costs to units of production in companies producing large quantities of homogeneous products; Progressive tax systemA tax system wherein the average tax rate increases for some increases in income but pull systema production system dictated by product sales Pull systemA materials flow concept in which parts are only withdrawn after a push systemthe traditional production system in which Push systemA materials flow concept in which parts are issued based on planned red-line systeman inventory ordering system in which a red relevant costinga process that compares, to the extent possible responsibility accounting systeman accounting information system for successively higher-level managers about the performance of segments or subunits under the control SecurityPiece of paper that proves ownership of stocks, bonds and other investments. SecurityEither the collateral on a loan, or some type of equity ownership or debt, such SecurityA share or an interest in a property or an enterprise such as a stock certificate or a bond. SecurityCollateral offered by a borrower to a lender to secure a loan. Security characteristic lineA plot of the excess return on a security over the risk-free rate as a function of Security deposit (initial)Synonymous with the term margin. A cash amount of funds that must be deposited Security deposit (maintenance)Related: Maintenance margin security market line (SML). A description of Security market lineLine representing the relationship between expected return and market risk. Security Market LineA graph illustrating the equilibrium relationship between the security market lineRelationship between expected return and beta. Security selection decisionChoosing the particular securities to include in a portfolio. 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