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Materials price variance |
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Definition of Materials price varianceMaterials price varianceThe difference between the actual and budgeted cost to
Related Terms:Arm's length priceThe price at which a willing buyer and a willing unrelated seller would freely agree to Ask priceA dealer's price to sell a security; also called the offer price. Bargain-purchase-price optionGives the lessee the option to purchase the asset at a price below fair market Basis priceprice expressed in terms of yield to maturity or annual rate of return. Bid priceThis is the quoted bid, or the highest price an investor is willing to pay to buy a security. Practically Call priceThe price, specified at issuance, at which the issuer of a bond may retire part of the bond at a Call priceThe price for which a bond can be repaid before maturity under a call provision. Clean priceBond price excluding accrued interest. Consumer Price Index (CPI)The CPI, as it is called, measures the prices of consumer goods and services and is a Conversion parity priceRelated:Market conversion price Convertible priceThe contractually specified price per share at which a convertible security can be CovarianceA statistical measure of the degree to which random variables move together. Delivery priceThe price fixed by the Clearing house at which deliveries on futures are in invoiced; also the Devaluation A decrease in the spot price of the currency
Dirty priceBond price including accrued interest, i.e., the price paid by the bond buyer. Dollar price of a bondPercentage of face value at which a bond is quoted. Effective call priceThe strike price in an optional redemption provision plus the accrued interest to the Equilibrium market price of riskThe slope of the capital market line (CML). Since the CML represents the Exercise priceThe price at which the underlying future or options contract may be bought or sold. Fair market priceAmount at which an asset would change hands between two parties, both having Fair priceThe equilibrium price for futures contracts. Also called the theoretical futures price, which equals Fair price provisionSee:appraisal rights. Fixed price basisAn offering of securities at a fixed price. Fixed-price tender offerA one-time offer to purchase a stated number of shares at a stated fixed price, Flat price riskTaking a position either long or short that does not involve spreading. Flat price (also clean price)The quoted newspaper price of a bond that does not include accrued interest. Full priceAlso called dirty price, the price of a bond including accrued interest. Related: flat price. Futures priceThe price at which the parties to a futures contract agree to transact on the settlement date. High priceThe highest (intraday) price of a stock over the past 52 weeks, adjusted for any stock splits. Invoice priceThe price that the buyer of a futures contract must pay the seller when a Treasury Bond is delivered. Law of one priceAn economic rule stating that a given security must have the same price regardless of the Limit priceMaximum price fluctuation Low priceThis is the day's lowest price of a security that has changed hands between a buyer and a seller. Low price-earnings ratio effectThe tendency of portfolios of stocks with a low price-earnings ratio to Limit priceMaximum price fluctuation Market conversion priceAlso called conversion parity price, the price that an investor effectively pays for Market price of riskA measure of the extra return, or risk premium, that investors demand to bear risk. The Market pricesThe amount of money that a willing buyer pays to acquire something from a willing seller, Marketplace price efficiencyThe degree to which the prices of assets reflect the available marketplace Materials requirement planningComputer-based systems that plan backward from the production schedule Maximum price fluctuationThe maximum amount the contract price can change, up or down, during one Mean-variance analysisEvaluation of risky prospects based on the expected value and variance of possible outcomes. Mean-variance criterionThe selection of portfolios based on the means and variances of their returns. The Mean-variance efficient portfolioRelated: Markowitz efficient portfolio Minimum price fluctuationSmallest increment of price movement possible in trading a given contract. Also Minimum-variance frontierGraph of the lowest possible portfolio variance that is attainable for a given Minimum-variance portfolioThe portfolio of risky assets with lowest variance. Nominal priceprice quotations on futures for a period in which no actual trading took place. Opening priceThe range of prices at which the first bids and offers were made or first transactions were Option priceAlso called the option premium, the price paid by the buyer of the options contract for the right Portfolio varianceWeighted sum of the covariance and variances of the assets in a portfolio. Price/book ratioCompares a stock's market value to the value of total assets less total liabilities (book Price/earnings ratio (PE ratio)Shows the "multiple" of earnings at which a stock sells. Determined by dividing current Price/sales ratio (PS Ratio)Determined by dividing current stock price by revenue per share (adjusted for stock splits). Price compressionThe limitation of the price appreciation potential for a callable bond in a declining interest Price discovery processThe process of determining the prices of the assets in the marketplace through the Price elasticitiesThe percentage change in the quantity divided by the percentage change in the price. Price impact costsRelated: market impact costs Price momentumRelated: Relative strength Price persistenceRelated: Relative strength Price riskThe risk that the value of a security (or a portfolio) will decline in the future. Or, a type of Price takersIndividuals who respond to rates and prices by acting as though they have no influence on them. Priced outThe market has already incorporated information, such as a low dividend, into the price of a stock. Price value of a basis point (PVBP)Also called the dollar value of a basis point, a measure of the change in Pricesprice of a share of common stock on the date shown. Highs and lows are based on the highest and Price-specie-flow mechanismAdjustment mechanism under the classical gold standard whereby Price-volume relationshipA relationship espoused by some technical analysts that signals continuing rises Put priceThe price at which the asset will be sold if a put option is exercised. Also called the strike or Reverse price riskA type of mortgage-pipeline risk that occurs when a lender commits to sell loans to an Serial covarianceThe covariance between a variable and the lagged value of the variable; the same as Settlement priceA figure determined by the closing range which is used to calculate gains and losses in Spot priceThe current marketprice of the actual physical commodity. Also called cash price. Stated conversion priceAt the time of issuance of a convertible security, the price the issuer effectively Strike priceThe stated price per share for which underlying stock may be purchased (in the case of a call) or Subscription priceprice that the existing shareholders are allowed to pay for a share of stock in a rights offering. Theoretical futures priceAlso called the fair price, the equilibrium futures price. Transfer priceThe price at which one unit of a firm sells goods or services to another unit of the same firm. Variable price securityA security, such as stocks or bonds, that sells at a fluctuating, market-determined price. VarianceA measure of dispersion of a set of data points around their mean value. The mathematical Variance minimization approach to trackingAn approach to bond indexing that uses historical data to Variance ruleSpecifies the permitted minimum or maximum quantity of securities that can be delivered to SPECIFIC INVOICE PRICESAn inventory valuation method in which a company values the items in its ending inventory based Bill of materialsA listing of all the materials and quantities that go to make up a completed product. Optimum selling priceThe price at which profit is maximized, which takes into account the cost behaviour of fixed and variable costs and the relationship between price and demand for a product/service. Raw materialsUnprocessed goods bought for manufacture, part of inventory. Transfer priceThe price at which goods or services are bought and sold within divisions of the same organization, as opposed to an armâ€™s-length price at which sales may be made to an external customer. Variance analysisA method of budgetary control that compares actual performance against plan, investigates the causes of the variance and takes corrective action to ensure that targets are achieved. price/earnings ratio (price to earnings ratio, P/E ratio, PE ratio)This key ratio equals the current market price Price to Earnings Ratio (P/E, PE Ratio)A measure of how much investors are willing to pay for each dollar VarianceThe weighted average of the squared deviations from the bill of materialsa document that contains information about budget variancethe difference between total actual overhead controllable variancethe budget variance of the two variance approach to analyzing overhead variances fixed overhead spending variancethe difference between the total actual fixed overhead and budgeted fixed overhead; fixed overhead volume variancesee volume variance labor efficiency variancethe number of hours actually worked minus the standard hours allowed for the production labor mix variance(actual mix X actual hours X standard rate) - (standard mix X actual hours X standard rate); labor rate variancethe actual rate (or actual weighted average rate) paid to labor for the period minus the standard rate multiplied by all hours actually worked during the period; labor yield variance(standard mix X actual hours X standard rate) - (standard mix X standard hours X standard rate);
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