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Definition of Period costs
The costs that relate to a period of time.
A general term referring to period costs, such as selling, administration and financial expenses.
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.
The period of time for which financial statements are produced – see also financial year.
The incremental costs of having an agent make decisions for a principal.
The annual rate of return that when compounded t times, would have
The time between each payment under an annuity.
The average useful life of a company's collective amortizable asset base.
Average number of days necessary to receive cash for the sale of
The ratio of accounts receivables to sales, or the total
costs that are identifiable with and able to be influenced by decisions made at the business
When a cost is recorded originally as an increase
costs that increase with increases in the level of investment in current assets.
costs of maintaining current assets, including opportunity cost of capital.
The length of the time period (for example, a quarter in the case of quarterly
the time between each interest computation
Costs Capitalized in Stealth
A particularly egregious form of aggressive cost capitalization
costs of financial distress
costs arising from bankruptcy or distorted business decisions before bankruptcy.
The length of time for which the customer is granted credit.
Critical Growth Periods
Times in a company's history when growth is essential and without which survival of the business might be in jeopardy.
costs that are readily traceable to particular products or services.
The period during which a customer can deduct the discount from the net amount of the bill
Discounted payback period rule
An investment decision rule in which the cash flows are discounted at an
The time interval over which a money manager's performance is evaluated.
The difference between the execution price of a security and the price that would have
Extended Amortization Period
An amortization period that continues beyond a long-lived asset's economic useful life.
Extended Amortization Periods
Amortizing capitalized expenditures over estimated useful lives that are unduly optimistic.
Financial distress costs
Legal and administrative costs of liquidation or reorganization. Also includes
costs that do not change with increases or decreases in the volume of goods or services
costs that do not depend on the level of output.
fixed expenses (costs)
Expenses or costs that remain the same in amount,
costs, both implied and direct, associated with a transaction. Such costs include time, effort,
Full Credit Period
The period of trade credit given by a supplier to its customer.
The price of obtaining capital, either borrowed or equity, with intent to carry on business operations.
A specific period of time after a premium payment is due during which the policy owner may make a payment, and during which, the protection of the policy continues. The grace period usually ends in 30 days.
Length of time during which repayments of loan principal are excused. Usually occurs at the start of the loan period.
Length of time that an individual holds a security.
Holding period return
The rate of return over a given period.
Incremental costs and benefits
costs and benefits that would occur if a particular course of action were
costs that are necessary to produce a product/service but are not readily traceable to particular products or services – see overhead.
Transaction costs that include the assessment of the investment merits of a financial asset.
Market impact costs
Also called price impact costs, the result of a bid/ask spread and a dealer's price concession.
Market timing costs
costs that arise from price movement of the stock during the time of the transaction
The costs to firms of changing their prices.
A portfolio strategy in which a portfolio is created that will be capable of
The period of time between the end of the discount period and the date payment is due.
In the Euromarket, a period over which Eurodollars are sold is said to be neutral if it does not
Odd first or last period
Fixed-income securities may be purchased on dates
The difference in the performance of an actual investment and a desired investment
Overhead generally refers to indirect, in contrast to direct,
The number of years necessary for the net cash flows of an
the time it takes an investor to recoup an
Time until cash flows recover the initial investment of the project.
cost other than one associated with making or acquiring inventory
a pay plan based on the time spent on the task rather than the work accomplished
A physical inventory count taken on a repetitive basis.
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.
Policy Acquisition Costs
costs incurred by insurance companies in signing new policies, including expenditures on commissions and other selling expenses, promotion expenses, premium
The costs of additional regulation, including higher taxes, borne by large and
PPF (periodic perpetuity factor)
a generalization formula invented by Abrams that is the present value of regular but noncontiguous cash flows that have constant growth to perpetuity.
A form of start-up cost incurred in preparing for the opening of a new store or facility.
Price impact costs
Related: market impact costs
The time period for which transactions are compiled into a set of financial statements.
Round-trip transactions costs
costs of completing a transaction, including commissions, market impact
costs associated with locating a counterparty to a trade, including explicit costs (such as
costs that are constant within a defined level of activity but that can increase or decrease when
costs that have both fixed and variable components.
costs incurred from shortages in current assets.
A budget cost for materials and labour used for decision-making, usually expressed as a per unit cost that is applied to standard quantities from a bill of materials and to standard times from a
costs related to such onetime activities as opening a new facility, introducing
The return of a portfolio over a shorter period of time than the evaluation period.
costs that have been incurred and cannot be reversed.
costs that have been incurred in the past.
costs that have been incurred and cannot be recovered.
T-period holding-period return
The percentage return over the T-year period an investment lasts.
costs of buying and selling marketable securities and borrowing. Trading costs include
The time, effort, and money necessary, including such things as commission fees and the
Undepreciated Capital Costs
The tax definition of the value of an asset that is eligible for tax deprecation.
costs that change as the level of output changes.
Time during which the SEC studies a firm's registration statement. During this time the firm
Waiting Period (Credit Insurance)
A specific time that must pass following the onset of a covered disability before any benefits will be paid under a creditor disability policy. (Also known as an elimination period).
Realignment period of a temporary misaligned yield relationship that sometimes occurs in
A methodology under which all manufacturing costs are assigned
Well, frankly, accrual is not a good descriptive
A contra, or offset, account that is coupled
activity based costing (ABC)
A relatively new method advocated for the
The write-off of an asset over the period when the asset is used. This term
The annual sales volume level at which total contribution
the practice of minimizing, to the extent
cost of capital
Refers to the interest cost of debt capital used by a business
Cost of goods sold
The charge to expense of the direct materials, direct labor, and
A costing methodology that only assigns direct labor and material costs
equivalent units of production (EUP)
an approximation of the number of whole units of output that could have been
FIFO method (of process costing)
the method of cost assignment that computes an average cost per equivalent
A period of time in which all costs are variable; greater than one year.
A period of time in which all costs are variable; greater than one year.
Short-term, cancelable lease. A type of lease in which the period of contract is less than the
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 budgeting that takes into account seasonal fluctuations and estimates of when revenues will be earned and costs will be incurred over each month in the budget period.
The general term profit is not precisely defined; it may refer to net
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