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Financial Terms | |
Wave picking |
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Definition of Wave pickingWave pickingThe practice of grouping the priority of pick lists so that groups of
Related Terms:Batch pickingpicking for several summarized orders at the same time, thereby Cherry PickingSelecting specific assets for sale so as to record desired gains or losses. Discrete order pickingA picking method requiring the sequential completion of Order pickingThe process of moving items from stock for shipment to customers. Picking listA document listing items to be removed from stock, either for delivery to the shop floor for production purposes or for delivery to a customer. Picking transactionWithdrawing parts or subassemblies from stock in order to Zone pickingThe practice of picking by area of the warehouse, rather than by ![]() BatchA group of similar products produced together. 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 "Soft" Capital RationingCapital rationing that under certain circumstances can be violated or even viewed Absolute AdvantageThe ability to produce a good or service with fewer resources than competitors. See also comparative advantage. Absolute priorityRule in bankruptcy proceedings whereby senior creditors are required to be paid in full Absolute Right of ReturnGoods may be returned to the seller by the purchaser without restrictions. 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 Accounting insolvencytotal liabilities exceed total assets. A firm with a negative net worth is insolvent on acid test ratio (also called the quick ratio)The sum of cash, accounts receivable, and short-term marketable Acquisition of assetsA merger or consolidation in which an acquirer purchases the selling firm's assets. allocationthe systematic assignment of an amount to a recipient AllocationThe process of storing costs in one account and shifting them to other Allocation base A measure of activity or volume such as labourhours, machine hours or volume of production approximated net realizable value at split-off allocationa method of allocating joint cost to joint products using a AssetAny possession that has value in an exchange. AssetA resource, recorded through a transaction, that is expected to yield a benefit to a Assetsomething that is owned; a financial claim or a piece of property that is a store of value. ![]() AssetProbable future economic benefit that is obtained or controlled by an entity as a result of assetAnything owned by, or owed to, an individual or business which has commercial or exchange value (e.g., cash, property, etc.). AssetAll things of value owned by an individual or organization. Asset activity ratiosRatios that measure how effectively the firm is managing its assets. Asset allocation decisionThe decision regarding how an institution's funds should be distributed among the Asset-Backed SecuritiesBond or note secured by assets of company. Asset-backed securityA security that is collateralized by loans, leases, receivables, or installment contracts 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. Asset classesCategories of assets, such as stocks, bonds, real estate and foreign securities. Asset CoverageExtent to which a company's net assets cover a particular debt obligation, class of preferred stock, or equity position. Asset-coverage testA bond indenture restriction that permits additional borrowing on if the ratio of assets to Asset/equity ratioThe ratio of total assets to stockholder equity. Asset for asset swapCreditors exchange the debt of one defaulting borrower for the debt of another Asset/liability managementAlso called surplus management, the task of managing funds of a financial asset mixThe weighting of assets in an investment portfolio among different asset classes (e.g. shares, bonds, property, cash, overseas investments. Asset pricing modelA model for determining the required rate of return on an asset. Asset pricing modelA model, such as the Capital Asset Pricing Model (CAPM), that determines the required Asset-specific RiskThe amount of total risk that can be eliminated by diversification by Asset substitutionA firm's investing in assets that are riskier than those that the debtholders expected. Asset substitution problemArises when the stockholders substitute riskier assets for the firm's existing Asset swapAn interest rate swap used to alter the cash flow characteristics of an institution's assets so as to Asset turnoverThe ratio of net sales to total assets. asset turnovera ratio measuring asset productivity and showing the number of sales dollars generated by each dollar of assets asset turnover ratioA broad-gauge ratio computed by dividing annual AssetsA firm's productive resources. ASSETSAnything of value that a company owns. AssetsThings that the business owns. AssetsItems owned by the company or expenses that have been paid for but have not been used up. Assets requirementsA common element of a financial plan that describes projected capital spending and the Available-for-Sale SecurityA debt or equity security not classified as a held-to-maturity security or a trading security. Can be classified as a current or noncurrent investment depending on the intended holding period. Bank for International Settlements (BIS)An international bank headquartered in Basel, Switzerland, which Best-efforts saleA method of securities distribution/ underwriting in which the securities firm agrees to sell Bill and Hold PracticesProducts that have been sold with an explicit agreement that delivery Break-even timeRelated: Premium payback period. Canadian Life and Health Insurance Association (CLHIA)An association of most of the life and health insurance companies in Canada that conducts research and compiles information about the life and health insurance industry in Canada. Capital allocationdecision Allocation of invested funds between risk-free assets versus the risky portfolio. capital assetan asset used to generate revenues or cost savings Capital assetA fixed asset, something that is expected to have long-term usage within Capital asset pricing model (CAPM)An economic theory that describes the relationship between risk and Capital Asset Pricing Model (CAPM)A model for estimating equilibrium rates of return and values of capital asset pricing model (CAPM)Theory of the relationship between risk and return which states that the expected risk Capital gains yieldThe price change portion of a stock's return. Capitalized Cost An expenditure or accrual that is reported as an asset to be amortized againstfuture-period revenue. Cash flow time-lineLine depicting the operating activities and cash flows for a firm over a particular period. Cash settlement contractsFutures contracts, such as stock index futures, that settle for cash, not involving Central BankA public agency responsible for regulating and controlling an economy's monetary and financial institutions. It is the sole money-issuing authority. centralizationa management style that exists when top management Closing saleA transaction in which the seller's intention is to reduce or eliminate a long position in a stock, Company-specific riskRelated: Unsystematic risk Companyspecific RiskSee asset-specific risk Comparison universeThe collection of money managers of similar investment style used for assessing Conditional SaleA type of agreement to sell whereby a seller retains title to goods sold and delivered to a purchaser until full payment has been made. Conditional Sale AgreementAn agreement entered into between a conditional buyer and a conditional seller setting out the terms under which goods change hands. Conditional sales contractsSimilar to equipment trust certificates except that the lender is either the ConsolA type of bond that has an infinite life but is not issued in the U.S. capital markets. Consolidated Omnibus Budget Reconciliation Act (COBRA)A federal Act ConsolidationThe combining of two or more firms to form an entirely new entity. ConsolidationA summarization of the financial statements of a parent company and Consortium banksA merchant banking subsidiary set up by several banks that may or may not be of the Contingent deferred sales charge (CDSC)The formal name for the load of a back-end load fund. Contra-asset accountAn offset to an asset account that reduces the balance of the asset account. cost allocationthe assignment, using some reasonable basis, Cost of goods soldThe cost of merchandise that a company sold this year. For manufacturing companies, the cost of raw Cost of goods soldSee cost of sales. Cost of goods soldThe cost of the items that were sold during the current period. Cost of goods soldThe accumulated total of all costs used to create a product or service, Cost of goods soldThe charge to expense of the direct materials, direct labor, and Cost of salesThe manufacture or purchase price of goods sold in a period or the cost of providing a service. Creative Accounting PracticesAny and all steps used to play the financial numbers game, including Crossover rateThe return at which two alternative projects have the same net present value. Current assettypically the cash, accounts receivable, and inventory accounts on the Current assetsValue of cash, accounts receivable, inventories, marketable securities and other assets that Current assetsCash, things that will be converted into cash within a year (such as accounts receivable), and inventory. Current assetsAmounts receivable by the business within a period of 12 months, including bank, debtors, inventory and prepayments. current assetsCurrent refers to cash and those assets that will be turned Current AssetsCash and other company assets that can be readily turned into cash within one year. cycle timethe time between the placement of an order to Date of recordDate on which holders of record in a firm's stock ledger are designated as the recipients of Days' sales in inventory ratioThe average number of days' worth of sales that is held in inventory. Days' sales outstandingAverage collection period. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |