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Financial Terms | |
Volume |
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Definition of VolumeVolumeThis is the daily number of shares of a security that change hands between a buyer and a seller.
Related Terms:Allocation base A measure of activity or volume such as labourhours, machine hours or volume of production Cost–volume–profit analysis (CVP)A method for understanding the relationship between revenue, cost and sales volume. cost-volume-profit (CVP)analysis a procedure that examines fixed overhead volume variancesee volume variance Price-volume relationshipA relationship espoused by some technical analysts that signals continuing rises profit-volume grapha visual representation of the amount volume variancea fixed overhead variance that represents ![]() ABC inventory classificationA method for dividing inventory into classifications, accretionan increase in units or volume caused by the addition Arms indexAlso known as a trading index (TRIN)= (number of advancing issues)/ (number of declining BottleneckA resource whose capacity is unable to match or exceed that of the demand Break-Even AnalysisAn analytical technique for studying the relationships between fixed cost, variable cost, and profits. A breakeven chart graphically depicts the nature of breakeven analysis. The breakeven point represents the volume of sales at which total costs equal total revenues (that is, profits equal zero). breakeven pointThe annual sales volume level at which total contribution CapacityThe maximum volume of products or services that can be produced given limitations of space, capacitya measure of production volume or some other activity base contribution marginAn intermediate measure of profit equal to sales revenue Cost behaviourThe idea that fixed costs and variable costs react differently to changes in the volume of CVPsee cost-volume-profit analysis Fixed costsCosts that do not change with increases or decreases in the volume of goods or services Fixed ExpensesCost of doing business which does not change with the volume of business. Examples might be rent for business premises, insurance payments, heat and light. fixed expenses (costs)Expenses or costs that remain the same in amount, Flexible budgetA method of budgetary control that flexes, i.e. adjusts the original budget by applying standard Item master fileA file containing all item-specific information about a component, J-curveTheory that says a country's trade deficit will initially worsen after its currency depreciates because Marginal costThe incremental change in the unit cost of a product as a result of a Mass customizationHigh-volume production runs of a product, while still offering Multirule systemA technical trading strategy that combines mechanical rules, such as the CRISMA NoisePrice and volume fluctuations that can confuse interpretation of market direction. noncontrollable variancethe fixed overhead volume variance; normal capacitythe long-run (5–10 years) average production operating leverageA relatively small percent increase or decrease in Overhead allocationThe process of spreading production overhead equitably over the volume of production of goods or services. Pareto analysisa method of ranking the causes of variation PivotPrice level established as being significant by market's failure to penetrate or as being significant when practical capacitythe physical production or service volume that a firm could achieve during normal working hours with consideration given to ongoing, expected operating interruptions predetermined overhead ratean estimated constant charge per unit of activity used to assign overhead cost to production or services of the period; it is calculated by dividing total budgeted annual overhead at a selected level of volume or activity by that selected measure of volume or activity; it is also the standard overhead application rate Sensitivity analysisAn approach to understanding how changes in one variable of cost–volume–profit analysis are affected by changes in the other variables. theoretical capacitythe estimated maximum production or Thin marketA market in which trading volume is low and in which consequently bid and asked quotes are Tight marketA tight market, as opposed to a thin market, is one in which volume is large, trading is active TurnoverMutual Funds: A measure of trading activity during the previous year, expressed as a percentage of unit-driven expensesExpenses that vary in close proportion to changes Variable costA cost that is directly proportional to the volume of output produced. When production is zero, Variable costA cost that increases or decreases in proportion with increases or decreases in the volume of production of goods or services. variable expensesExpenses that change with changes in either sales volume Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |