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Financial Terms | |
predictor |
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Definition of predictorpredictoran activity measure that, when changed, is accompanied
Related Terms:Unbiased predictorA theory that spot prices at some future date will be equal to today's forward rates. allocateassign based on the use of a cost driver, a cost predictor, International Fisher effectStates that the interest rate differential between two countries should be an 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. ![]() Acceleration ClauseClause causing repayment of a debt, if specified events occur or are not met. activitya repetitive action performed in fulfillment of business functions activity analysisthe process of detailing the various repetitive actions that are performed in making a product or Activity-based budgetingA method of budgeting that develops budgets based on expected activities and cost drivers – see also activity-based costing. 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 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 ![]() 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 activity centera segment of the production or service activity drivera measure of the demands on activities and, Actual costThe actual expenditure made to acquire an asset, which includes the supplierinvoiced actual cost systema valuation method that uses actual direct Agency cost viewThe argument that specifies that the various agency costs create a complex environment in Agency costsThe incremental costs of having an agent make decisions for a principal. Agency theoryThe analysis of principal-agent relationships, wherein one person, an agent, acts on behalf of Aggressive Cost Capitalizationcost capitalization that stretches the flexibility within generally algebraic methoda process of service department cost allocation All-in costTotal costs, explicit and implicit. Allocation base A measure of activity or volume such as labourhours, machine hours or volume of production Allowance methodA method of adjusting accounts receivable to the amount that is expected to be collected based on company experience. Amortized Costcost of a security adjusted for the amortization of any purchase premium or Announcement datedate on which particular news concerning a given company is announced to the public. appraisal costa quality control cost incurred for monitoring Arbitrage Pricing Theory (APT)An alternative model to the capital asset pricing model developed by Asset activity ratiosRatios that measure how effectively the firm is managing its assets. Asset-based financingmethods of financing in which lenders and equity investors look principally to the Asset-Based FinancingLoans granted usually by a financial institution where the asset being financed constitutes the sole security given to the lender. AssignmentThe receipt of an exercise notice by an options writer that requires the writer to sell (in the case AssignmentThis is the legal transfer on one person's interest in an insurance policy to another person or entity, such as to a bank to qualify for a loan 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 Clearing House (ACH)A collection of 32 regional electronic interbank networks used to Automated Clearing House (ACH)A banking clearinghouse that processes direct Average (across-day) measuresAn estimation of price that uses the average or representative price of a Average-Cost Inventory MethodThe inventory cost-flow assumption that assigns the average Average cost of capitalA firm's required payout to the bondholders and to the stockholders expressed as a Avoidable costscosts that are identifiable with and able to be influenced by decisions made at the business backflush costinga streamlined cost accounting method that speeds up, simplifies, and reduces accounting effort in an environment that minimizes inventory balances, requires balancing itemVariable that adjusts to maintain the consistency Bankruptcy cost viewThe argument that expected indirect and direct bankruptcy costs offset the other Batch costA cost that is incurred when a group of products or services are produced, batch-level costa cost that is caused by a group of things Benefit Ratio MethodThe proportion of unemployment benefits paid to a company’s Benefit Wage Ratio MethodThe proportion of total taxable wages for laid off Block houseBrokerage firms that help to find potential buyers or sellers of large block trades. Bootstrapping, bootstrap methodAn arithmetic method for backing an Bubble theorySecurity prices sometimes move wildly above their true values. budgeted costa planned expenditure business-value-added activityan activity that is necessary for the operation of the business but for which a customer would not want to pay Call dateA date before maturity, specified at issuance, when the issuer of a bond may retire part of the bond Capital Cost Allowance (CCA)The annual depreciation expense allowed by the Canadian Income Tax Act. Capitalization methodA method of constructing a replicating portfolio in which the manager purchases a capitalization of costswhen a cost is recorded originally as an increase Capitalized Cost An expenditure or accrual that is reported as an asset to be amortized againstfuture-period revenue. Carring costscosts that increase with increases in the level of investment in current assets. carrying costthe total variable cost of carrying one unit of Carrying costThe cost of holding inventory, which can include insurance, carrying costscosts of maintaining current assets, including opportunity cost of capital. Cash costThe amount of cash expended. Cash-equivalent itemsTemporary investments of currently excess cash in short-term, high-quality Cash Flow Provided or Used from Financing ActivitiesCash receipts and payments involving Cash Flow Provided or Used from Investing ActivitiesCash receipts and payments involving Changes in Financial PositionSources of funds internally provided from operations that alter a company's Clearing House Automated Payments System (CHAPS)A computerized clearing system for sterling funds Clearing house / ClearinghouseAn adjunct to a futures exchange through which transactions executed its floor are settled by a Clearing House Interbank Payments System (CHIPS)An international wire transfer system for high-value Commission houseA firm which buys and sells future contracts for customer accounts. Related: futures committed costa cost related either to the long-term investment company cost of capitalExpected rate of return demanded by investors in a company, determined by the average risk of the company’s assets and operations. Completed-Contract MethodA contract accounting method that recognizes contract revenue Consolidated Omnibus Budget Reconciliation Act (COBRA)A federal Act controllable costa cost over which a manager has the ability to authorize incurrence or directly influence magnitude conversion costRefers to the sum of manufacturing direct labor and overhead conversion costthe total of direct labor and overhead cost; CostA resource sacrificed or forgone to achieve a specific objective (Horngren et al.), defined costthe cash or cash equivalent value necessary to attain an CostThe expense incurred to create and sell a product or service. If a product is not cost accountinga discipline that focuses on techniques or Cost Accounting Standards Board (CASB)a body established by Congress in 1970 to promulgate cost accounting cost accumulationthe approach to product costing that determines cost allocationthe assignment, using some reasonable basis, cost avoidancethe practice of finding acceptable alternatives Cost basisAn asset’s purchase price, plus costs associated with the purchase, like installation fees, taxes, etc. Cost behaviourThe idea that fixed costs and variable costs react differently to changes in the volume of Cost-Benefit AnalysisThe calculation and comparison of the costs and benefits of a policy or project. cost-benefit analysis the analytical process of comparing therelative costs and benefits that result from a specific course Cost-benefit ratioThe net present value of an investment divided by the investment's initial cost. Also called cost centera responsibility center in which the manager has Cost centreA division or unit of an organization that is responsible for controlling costs. Cost company arrangementArrangement whereby the shareholders of a project receive output free of cost consciousnessa company-wide attitude about the topics cost containmentthe practice of minimizing, to the extent Cost controlThe process of either reducing costs while maintaining the same level of productivity or maintaining costs while increasing productivity. cost control systema logical structure of formal and/or informal Cost depletionA method of expensing the cost of a resource consumed by first determining Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |