|Moving average inventory method|
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: tax advisor, finance, financial, inventory, credit, stock trading, accounting, payroll,
Definition of Moving average inventory method
Moving average inventory method
An inventory costing methodology that calls for the re-calculation of the average cost of all parts in stock after every purchase.
Arithmetic mean return.
An arithmetic mean of selected stocks intended to represent the behavior of the market or some
The average project earnings after taxes and depreciation divided by the average
The weighted-average age of all of the firm's outstanding invoices.
The ratio of accounts receivables to sales, or the total
A firm's required payout to the bondholders and to the stockholders expressed as a
Also referred to as the weighted-average life (WAL). The average number of years that each
The average time to maturity of securities held by a mutual fund. Changes in interest rates
An estimation of price that uses the average or representative price of a
The ratio of the average cash inflow to the amount invested.
Taxes as a fraction of income; total taxes divided by total taxable income.
A secured loan that gives the lender a lien against all the borrower's inventories.
A method of constructing a replicating portfolio in which the manager purchases a
Under this currency translation method, all foreign currency balance-sheet and income
The average number of days' worth of sales that is held in inventory.
Direct estimate method
A method of cash budgeting based on detailed estimates of cash receipts and cash
Dow Jones industrial average
This is the best known U.S.index of stocks. It contains 30 stocks that trade on
The practice of reporting to shareholders using straight-line depreciation and
For companies: Raw materials, items available for sale or in the process of being made ready for
A secured short-term loan to purchase inventory. The three basic forms are a blanket
The ratio of annual sales to average inventory which measures the speed that inventory
Just-in-time inventory systems
Systems that schedule materials/inventory to arrive exactly as they are
Log-linear least-squares method
A statistical technique for fitting a curve to a set of data points. One of the
Monetary / non-monetary method
Under this translation method, monetary items (e.g. cash, accounts
Used in charts and technical analysis, the average of security or commodity prices
The practice of making a charge in the income account equivalent to the tax savings
Accounting for an acquisition using market value for the consolidation of the two entities'
A method of allocating the purchase price for the acquisition of another firm among the
Simple compound growth method
A method of calculating the growth rate by relating the terminal value to
Simple moving average
The mean, calculated at any time over a past period of fixed length.
A method of cash budgeting that is organized along the lines of the statement of cash flows.
Under this currency translation method, the choice of exchange rate depends on the
Weighted average cost of capital
Expected return on a portfolio of all the firm's securities. Used as a hurdle
Weighted average coupon
The weighted average of the gross interest rate of the mortgages underlying the
Weighted average life
Weighted average maturity
The WAM of a MBS is the weighted average of the remaining terms to maturity
Weighted average remaining maturity
The average remaining term of the mortgages underlying a MBS.
Weighted average portfolio yield
The weighted average of the yield of all the bonds in a portfolio.
The number of times a company sold out and replaced its average stock of goods in a year. The formula is:
The value of the products that a retailing or wholesaling company intends to resell for a profit.
An inventory valuation method that calculates a weighted average cost per unit for all the goods available for sale.
Goods bought or manufactured for resale but as yet unsold, comprising raw materials, work-in-progress and finished goods.
Weighted average cost of capital
See cost of capital.
A method of adjusting accounts receivable to the amount that is expected to be collected based on company experience.
A method of preparing the operating section of the Statement of Cash Flows that uses the company’s actual cash inflows and cash outflows.
Direct write-off method
A method of adjusting accounts receivable to the amount that is expected to be collected by eliminating the account balances of specific nonpaying customers.
A 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.
The cost of the goods that a company has available for resale.
Periodic inventory system
An 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 system
An inventory system in which the balance in the inventory account is adjusted for the units sold each time a sale is made.
A method of accounting for inventory.
A term describing the loss of products from inventory
inventory turnover ratio
The cost-of-goods-sold expense for a given
Refers to making an entry, usually at the close of a
weighted-average cost of capital
Weighted means that the proportions of
Average Collection Period
average number of days necessary to receive cash for the sale of
Inventory Turnover Ratio
Provides a measure of how often a company's inventory is sold or
Weighted Average Cost of Capital (WACC)
The weighted average of the costs of the capital components
a process of service department cost allocation
a service department cost allocation approach
dividend growth method
a method of computing the cost
dollar days (of inventory)
a measurement of the value of inventory for the time that inventory is held
FIFO method (of process costing)
the method of cost assignment that computes an average cost per equivalent
a technique used to determine the fixed
judgmental method (of risk adjustment)
an informal method of adjusting for risk that allows the decision maker
method of least squares
see least squares regression analysis
method of neglect
a 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
net present value method
a process that uses the discounted
risk-adjusted discount rate method
a 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
an iterative (sequential) algorithm used to solve multivariable, multiconstraint linear programming problems
a high-performance, data-driven approach to analyzing and solving the root causes of business problems
a 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
a streamlined system of inventory
weighted average cost of capital
a composite of the cost of the various sources of funds that comprise a firm’s capital structure; the minimum rate of return that must be earned on new investments so as not to dilute shareholder value
weighted average method (of process costing)
the method of cost assignment that computes an average cost per
Bootstrapping, bootstrap method
An arithmetic method for backing an
A price average that is adjusted by adding other
A financial chart that plots leading and lagging
The beginning inventory for a period, plus the amount at the end of
The amount of money invested in inventory, as per a company’s
Finished goods inventory
Goods that have been completed by the manufacturing
First in, first-out costing method (FIFO)
A process costing methodology that assigns the earliest
A capital budgeting analysis method that calculates the amount of
A system that continually tracks all additions to and deletions
An accounting method used to combine the financial statements of
Raw materials inventory
The total cost of all component parts currently in stock that
inventory that has been partially converted through the
average tax rate
Total taxes owed divided by total income.
Dow Jones Industrial Average
Index of the investment performance of a portfolio of 30 “blue-chip” stocks.
weighted-average cost of capital (WACC)
Expected rate of return on a portfolio of all the firm’s securities, adjusted for tax savings due to interest payments.
Average Propensity to Consume
Ratio of consumption to disposable income. See also marginal propensity to consume.
Average Propensity to Save
Ratio of saving to disposable income. See also marginal propensity to save.
Goods that a firm stores in anticipation of its later sale or use as an input.
Benefit Ratio Method
The proportion of unemployment benefits paid to a company’s
Benefit Wage Ratio Method
The proportion of total taxable wages for laid off
Average-Cost Inventory Method
The inventory cost-flow assumption that assigns the average
Average Amortization Period
The average useful life of a company's collective amortizable asset base.
Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.