Average Fixed Cost (AFC) is a financial metric in economics which is calculated by taking the total fixed costs (TFC) of production and dividing them by the total output (Q) produced. AFC helps in understanding how fixed costs are spread across units produced, giving insights into the cost structure of production.
Depreciation refers to the reduction in the value of an asset over time, particularly due to wear and tear. It is utilized in accounting to allocate the cost of a tangible asset over its useful life.
The F-statistic is a ratio of two variances used in various statistical tests including hypothesis testing for equal variances, equal means, and the relationship between dependent and independent variables.
A fabricator is an employee who converts materials into units, parts, or items. They can function as an assembler or a manufacturer of goods or materials. Custom fabricators, in particular, manufacture goods to specific orders.
A facade refers to the outside front wall or face of a building, often highlighted for its architectural design and aesthetic appeal.
The term FACE can refer to various financial and business concepts, including FACE INTEREST RATE and FACE VALUE.
The face amount, also known as the face value or coverage amount, is the sum of insurance provided by a policy payable at death or maturity.
The Face Amount of a Bond represents the nominal or principal amount that the issuer agrees to pay the bondholder at maturity.
A Face Interest Rate is the percentage interest rate specified on the bond or loan document. It differs from the Effective Rate, which is a more meaningful yield figure reflecting the actual cost of borrowing.
Face value, also known as par value, denotes the nominal or stated value a particular asset maintains, such as stocks, bonds, or other types of securities. It is predominantly utilized in the fields of finance and investment to determine the fixed worth sovereignly ascribed to an instrument.
Facebook is a popular social networking site launched by Mark Zuckerberg and his Harvard College roommates in 2004, which allows users to connect with friends, family, and other people around the world.
Facilities Management involves the process of operating corporate- or government-owned property that is occupied and used for the corporation's or government's own purposes.
A facility is an agreement between a bank and a company that grants the company a line of credit with the bank. This can either be a committed facility or an uncommitted facility.
A facility fee is a charge that a borrower must pay to a lender for the opportunity to borrow additional funds. Typically applied in syndicated loan agreements, the facility fee compensates the lenders for making credit available.
In activity-based costing, a facility-sustaining activity is an activity that is performed to sustain the organization as a whole. Examples of such activities include security, safety, maintenance, and plant management. These costs cannot be directly traced to specific products.
A facsimile, commonly known as a fax, is an exact copy of a written business document or picture that is typically sent over a telephone line or other electronic medium.
Facsimile transmission (fax) refers to the use of electronics to send printed materials. A picture of the material is coded by an electronic scanning device, transmitted over telephone lines or electronic wires, and reproduced at its destination.
Facsimile transmission, commonly known as fax, is a method of sending copies of documents via telephone lines.
A neutral party who studies the issues in a dispute and makes a recommendation for a fair settlement.
A faction is an informal group of people operating within an organization that often opposes a larger group. Typically, factions are formed through voluntary membership by individuals who share common goals. It is similar to a clique but usually focuses more on strategic objectives within the organization.
An agent employed to sell goods or merchandise consigned or delivered to him by or for his principal for compensation.
Factor Analysis is a mathematical procedure used to reduce a large amount of data into a structure that can be more easily studied. It summarizes information contained in multiple variables into a smaller number of interrelated factors.
The concept of factorial is used both in statistics and mathematics to describe either a certain type of experimental design or the product of all positive integers up to a given number.
Factoring is a financial transaction where a business sells its accounts receivable to a third party (factor) at a discount, providing the business with immediate working capital.
Factors are critical economic resources and agents involved in the production and distribution of goods and services, encompassing capital, human resources, property resources, entrepreneurial ability, and intermediaries.
Factors of production refer to the resources required to produce economic goods, including land, labor, capital, and entrepreneurial ability. Each factor has an associated cost: rent for land, wages for labor, interest for capital, and profit for the entrepreneur.
Factory costs, also known as factory expenses, are expenditures incurred by the manufacturing section of an organization. This includes direct materials, direct labor, direct expenses, and manufacturing overheads. It excludes markup or profit.
Factory overhead, also known as indirect manufacturing costs or factory burden, includes the expenses associated with manufacturing that cannot be directly traced to a specific product. Examples include factory rent, maintenance wages, and general machinery depreciation.
A 'fail to deliver' situation occurs when the broker-dealer on the sell side of a contract does not deliver the securities to the broker-dealer on the buy side. This typically results from a broker not receiving delivery from its selling customer.
A situation where the broker-dealer on the buy side of a contract has not received delivery of securities from the broker-dealer on the sell side, leading to non-payment for the securities by the buyer.
Failure refers to the lack of success in achieving a desired outcome or the inability of a system or component to perform its expected function.
Failure analysis is the systematic examination of a function, project, or relationship that did not meet its objectives to identify the reasons for the failure and implement corrective measures for future success.
The Failure-to-File Penalty is assessed on tax returns not filed by the due date, and it is typically a percentage of the tax that remains unpaid. This penalty aims to deter late filings and encourage timely compliance.
A type of insurance coverage designed to provide a safety net for inner-city business owners or homeowners who are unable to purchase property insurance through conventional means.
Fair competition refers to business practices that adhere to regulations and ethical standards, ensuring a level playing field for all market participants.
The Fair Credit Billing Act (FCBA) is a federal law designed to facilitate the handling of credit complaints and eliminate abusive credit billing practices. It applies to open-end credit accounts, such as credit cards and revolving charge accounts.
The Fair Credit Reporting Act (FCRA) is a federal law that grants individuals the right to access their credit reports at credit reporting agencies. The act allows individuals to challenge and correct any inaccuracies in their credit records if mistakes are proven.
Fair Housing Law is a federal law that prohibits discrimination on the grounds of race, color, sex, religion, handicap, familial status, or national origin in the selling or renting of homes and apartments.
The Fair Labor Standards Act (FLSA) is a federal law enacted in 1938 that establishes minimum wage, overtime pay, and child labor standards in the United States.
Fair Market Rent (FMR) is the estimated amount of money a given property would likely command if it were available for lease in the current open market.
Fair Market Value (FMV) refers to the price at which an asset or service would change hands between a willing buyer and a willing seller, both having adequate information about the asset or service and under no compulsion to buy or sell.
The requirement that financial statements should not be misleading. 'Fair presentation' ensures that financial reports provide a true and fair view of the company's financial position in accordance with accounting standards.
The fair rate of return is a level of profit that a public utility is allowed to earn as determined by federal and/or state regulators. Public utility commissions set this rate based on the utility's needs to maintain service to its customers, pay adequate dividends to shareholders, and maintain and expand plant and equipment.
Fair Trade in retailing refers to an agreement between manufacturers and retailers that ensures the manufacturer's product is sold at or above an agreed-upon price. Despite its historical significance, the practice was effectively eliminated by the Consumer Goods Pricing Act of 1975.
In copyright law, fair use permits the quotation or reproduction of a small portion of copyrighted material (with proper acknowledgment) without the permission of the copyright holder. The permissible amount varies based on several factors, with the central idea being that the use should not significantly impact the market for the original work.
Fair value, often referred to as fair market value, is the estimated amount for which an asset or liability could be exchanged in an arm's length transaction between informed, willing parties. It plays an essential role in acquisition accounting, and is significant in accounting for derivatives and other complex financial instruments.
A form of accounting in which assets are measured at their current market price, recognizing all changes in value within the profit and loss account, differing from traditional historical-cost accounting by recording unrealized gains.
Fair Value Accounting (FVA) refers to the method of valuing assets and liabilities at prices that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
A fairness opinion is a professional evaluation provided by an independent appraiser or investment banker, assessing the fairness of the price proposed in corporate transactions such as mergers, takeovers, or leveraged buyouts. This document aims to ensure that the offered price is equitable and serves the best interests of the shareholders.
Faithful representation means that financial information accurately reflects the real-world economic events or conditions it represents. This concept is central to the credibility of financial reports and ensures that information is complete, free from bias, and free from error.
A term describing a sharp decline in a stock's price, typically as a reaction to negative corporate news or events. It indicates a sudden and significant drop in value.
A fallback option is a pre-designed alternative plan or reserved position that management keeps in place to ensure continuity and stability if the primary option or strategy fails.
False advertising involves describing goods, services, or real property in a misleading fashion. It is considered illegal and unethical, often subject to regulatory scrutiny and legal penalties.
Falsify refers to the act of intentionally altering or distorting true information, statements, representations, or acts to deceive others, commonly seen in unauthorized alterations of documents like contracts.
Familial status refers to a characteristic determined by a person's household type, such as marriage and existing or prospective children. It is a key term under the Fair Housing Law and the Fair Credit Reporting Act, aimed at prohibiting discrimination against individuals under 18 living with a parent or legal guardian, as well as pregnant women.
The Family and Medical Leave Act (FMLA) is a U.S. federal law, administered by the Department of Labor, that mandates employers with 50 or more employees to provide unpaid, job-protected leave for specified family and medical reasons.
A marketing strategy where the same brand name is given to a number of products to encourage recognition, ease the introduction of new products, increase market acceptance, and lower marketing costs.
A Family Income Policy is an insurance policy that provides extra income during the period when children are growing up. This life insurance contract combines ordinary life and decreasing term insurance.
The Family Life Cycle describes various stages in family life resulting in different buying patterns. It accounts for changes in family structure and behavior accompanying the progression from birth to death.
A Family Limited Partnership (FLP) is a type of limited partnership where the majority of interests are held by members of the same family. It can provide tax benefits, such as reducing gift and estate taxes, but has limitations regarding ownership and transferability.
A family of funds refers to a group of mutual funds managed by the same investment management company, each with different investment objectives and the ability to switch investments among the funds.
FAPA stands for Fellow of the Association of Authorized Public Accountants. It is a prestigious designation granted to distinguished members of the accounting profession.
Fare refers to the charge or payment made by passengers for transportation services provided by various carriers, including buses, trains, taxis, airplanes, and ferries.
A 'FARM' can refer to both an agricultural operation and a sales technique. For federal tax purposes, it includes a variety of agricultural pursuits, structures, and animal husbandry operations.
An agency of the federal government that makes mortgage loans on rural property to farmers and to individuals who provide services to farmers and ranchers. Loans are made at below-market interest rates. Borrowers are required to purchase stock in their local land bank association, which serves as additional security for the loan.
Unsold agricultural goods. The government will often purchase certain farm surplus products in order to maintain a profitable price level for the farmers. The storage and use of farm surplus products is a controversial political problem.
A former agency of the U.S. Department of Agriculture responsible for administering assistance programs for purchasers of homes and farms in small towns and rural areas.
Farming, as defined by the Income Tax (Trading and Other Income) Act 2005, involves the occupation of land predominantly for the purpose of husbandry, excluding market gardening. Special tax provisions and reporting rules apply to farming activities.
The Financial Accounting Standards Advisory Council (FASAC) serves as an advisory body to the Financial Accounting Standards Board (FASB) on matters related to accounting standards, offering broad perspectives from diverse financial communities, ensuring comprehensive and sustainable financial reporting standards.
A political doctrine characterized by dictatorial power, forcible suppression of opposition, strong regimentation of society and the economy, often including nationalism and racism.
Fashion refers to the style of conduct or dress that is being followed by individuals at a particular time. It encompasses clothing, accessories, lifestyle, and behavior trends that evolve seasonally, based on consumer tastes, cultural influences, and social dynamics.
The process of selecting certain employees for rapid advancement within an organization, often based on their exceptional qualities and potential.
A faux pas is a social blunder made by an individual. It may involve an improper action or a mistake in speech, leading to embarrassment or offense.
A favorable trade balance occurs when the value of a nation’s exports exceeds the value of its imports, resulting in a surplus.
Favorites is a term used by Microsoft for documents or URLs that users have marked for easy retrieval, allowing for quick access to frequently used content.
In standard costing and budgetary control, a favourable variance is any difference between the actual and budgeted performance of an organization where this creates an addition to the budgeted profit. For example, a favourable variance may occur if the actual sales revenue is greater than that budgeted or if actual costs are less than budgeted costs.
FCA stands for both the Financial Conduct Authority and Fellow of the Institute of Chartered Accountants in England and Wales. Each represents significant entities in the realms of finance regulation and professional accounting standards, respectively.
FCCA stands for Fellow of the Association of Chartered Certified Accountants, a prestigious and globally recognized credential in the field of accounting.
FCT stands for Fellow of the Association of Corporate Treasurers, which is a prestigious qualification awarded to professionals who demonstrate exceptional expertise and leadership in the field of corporate treasury management.
A feasibility study is an analytical process used to determine the viability of a project, venture, or business activity. It assesses various aspects, including financial, technical, legal, and operational factors, to evaluate the potential for successful completion and a satisfactory return on investment.
The idiom 'feather one's nest' means to make a comfortable and secure living place, often for retirement. It can also imply misappropriating funds for personal benefit.
Featherbedding refers to work rules that require payment to employees for work that is not actually performed or that is unnecessary.
Federal Agency Issues or Federal Agency Securities are debt instruments issued by agencies of the federal government that hold high credit ratings due to their sponsorship by the U.S. government.
The Federal Agricultural Mortgage Corporation, commonly known as Farmer Mac, is a federally chartered organization established in 1988 to provide a secondary market for farm mortgage loans.
The Federal Agricultural Mortgage Corporation, known as Farmer Mac, is a stockholder-owned, federally chartered corporation established to improve the availability of long-term credit for America's rural communities by providing a secondary market for agricultural real estate and rural housing mortgage loans.
The Federal Aviation Administration (FAA) is a national aviation authority in the United States, responsible for the regulation and oversight of civil aviation within the country. It is tasked with ensuring the safety and efficiency of the national airspace system.
The Federal Aviation Administration (FAA) is an agency of the U.S. Department of Transportation responsible for regulating and overseeing all aspects of civil aviation in the United States. It aims to ensure aviation safety, regulate air commerce, and manage air traffic control operations.
The Federal Crisis Inquiry Commission (FCIC) was a ten-member panel created by President Barack Obama in 2009 to investigate the causes of the financial and economic crisis in the United States.
The federal deficit (or surplus) refers to the shortfall (or surplus) resulting when the federal government spends more (or less) in a fiscal year than it receives in revenue. The deficit is financed by borrowing from the public via long and short-term debt instruments.
The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation providing deposit insurance to depositors in U.S. commercial banks and savings institutions.
The Federal Deposit Insurance Corporation (FDIC) is an independent federal agency established in 1933 that insures deposits up to $250,000 in member commercial banks.
The Federal Energy Regulatory Commission (FERC) is a crucial independent agency that oversees the interstate transmission of electricity, natural gas, and oil in the United States. Additionally, FERC reviews proposals to establish liquefied natural gas (LNG) terminals and interstate natural gas pipelines, and it licenses hydropower projects.
A federal tax imposed on the transfer of wealth through estates and gifts, calculated based on the value of a decedent's estate and lifetime gifts.
The Federal Farm Credit System (FCS) is a network of borrower-owned financial institutions that provide credit and related services to agricultural and rural communities across the United States. The Federal Farm Credit Banks are part of this system, offering funds to agricultural producers and rural businesses.
Federal Flood Insurance provides coverage to residents, including businesses and nonbusiness operations, in communities qualified under the National Flood Insurance Program (NFIP), offering subsidized and nonsubsidized premium rates for structures and their contents.
Federal funds are reserve balances that private banks in the U.S. hold at Federal Reserve banks. These funds are used for various types of inter-bank transactions, including lending to other banks that have insufficient reserves.
Non-interest-bearing deposits held at the US Federal Reserve System that are traded between member banks. The Federal funds rate or Fed funds rate is the overnight rate paid on these funds.
The Federal Funds Rate is the interest rate at which depository institutions (such as banks and credit unions) lend reserve balances to other depository institutions overnight on an uncollateralized basis. This rate is pivotal in the financial system as it influences many other interest rates, such as those for savings accounts, loans, and mortgages, and it's a key indicator of monetary policy direction in the United States.
A former system that provided credit reserves to savings and loan associations, cooperative banks, and other mortgage lenders, akin to the Federal Reserve Bank's function for commercial banks.
A Government-Sponsored Enterprise (GSE) nicknamed Freddie Mac that buys qualifying residential mortgages, packages them into new securities, and resells them on the open market.
