A fixed charge is the portion of an expense that remains constant, regardless of the amount of a commodity or service used or consumed.
A fixed cost (also known as a fixed expense) is an item of expenditure that remains unchanged in total, irrespective of changes in the levels of production or sales. Examples include business rates, rent, and some salaries.
A fixed disk, also known as a hard disk, is a data storage device used for storing and retrieving digital information.
A fixed exchange rate is an exchange rate system where the value of a currency is pegged by the government to that of another currency, a basket of currencies, or a measure of value, such as gold. The government maintains this rate through economic policies and interventions in the foreign exchange market.
In the operation of a business, fixed expenses are those that remain constant regardless of production or sales levels. These are crucial for budgeting and financial planning, and they contrast with variable expenses, which fluctuate with the level of production or sales.
A fixed fee is a set price agreed upon for the completion of a project, representing a predetermined total cost regardless of the incurred expenses. This arrangement can provide budget certainty for clients while imposing some financial risk for contractors.
The fixed overhead absorption rate is calculated by dividing the budgeted fixed overheads by the budgeted production units or other budgeted production measures, reflecting the allocation of fixed manufacturing overheads to individual units of production.
In a system of standard costing, the fixed overhead capacity variance measures the difference between the actual hours worked and the budgeted capacity available, valued at the standard fixed overhead absorption rate per hour.
Fixed overhead costs are the elements of the indirect costs of an organization's product that, in total, remain unchanged irrespective of changes in the levels of production or sales. Examples include administrative salaries, sales personnel salaries, and factory rent.
In a system of standard costing, the fixed overhead efficiency variance represents the difference between the actual labor hours worked and the standard time allowed for the quantity actually produced, valued at the standard fixed overhead absorption rate per hour.
Fixed Overhead Expenditure Variance in standard costing refers to the difference between the fixed overhead budgeted and the actual fixed overhead incurred.
In a system of standard costing, the fixed overhead total variance represents the difference between the standard fixed overhead absorbed for the actual units produced and the actual fixed overhead expenditure incurred.
Fixed Overhead Volume Variance is a metric used in standard costing systems to quantify the difference between actual and budgeted production levels, valued at the standard fixed overhead absorption rate per unit. It measures the over- or under-recovery of fixed overheads due to the variance in actual activity levels from what was budgeted.
A fixed premium is a payment for insurance coverage that remains the same throughout the entire premium-paying period.
Fixed production overhead consists of factory costs that remain constant regardless of changes in the level of production or sales. Understanding these overheads is crucial for accurate financial and managerial accounting.
Fixed-asset investment refers to the expenditure on tangible assets that are likely to have a life of more than one year. These investments are essential for business operations and often include property, machinery, and infrastructure.
The Fixed-Asset to Equity-Capital Ratio is a financial metric used to assess a business's ability to satisfy long-term debt by comparing the value of its fixed assets to its equity capital.
A ratio that measures an organization's activity over a period by calculating the number of times the sales are a multiple of the balance-sheet value of the fixed assets.
A comprehensive listing of a company's fixed assets, detailing each asset's location, cost, revaluation, estimated net value, useful economic life, depreciation method, accumulated depreciation, and net book value.
The Fixed-Charge Coverage Ratio (FCCR) is a financial metric that reflects a company's ability to cover its fixed charges, such as interest and lease expenses, with its earnings before interest and taxes (EBIT). It's a key metric used by lenders and investors to assess a company's financial health and risk level.
The Fixed-Charge Coverage Ratio measures a firm's ability to meet its fixed financial obligations, including interest payments on long-term debt and other contractual commitments, relative to its earnings before interest and taxes.
Fixed-income refers to a type of investment or income stream where payments are received on a regular schedule and are typically not adjusted for inflation. Common examples include most bonds, certain annuities, and some pension funds.
Fixed-income investments are financial instruments that provide a fixed rate of return in the form of periodic interest or dividends until maturity.
Fixed-interest securities provide defined interest payments and are considered lower-risk investments. Examples include gilt-edged securities, bonds, preference shares, and debentures.
A fixed-point number in which the decimal point is set at a fixed location, commonly used for representing numbers with a predetermined scale.
A Fixed-Price Contract is a type of contract where the price is preset and not affected by the actual costs incurred during production or service execution. It ensures cost certainty for the buyer, transferring risk to the seller.
A fixed-rate loan is a type of financing arrangement where the interest rate remains constant for the entire term of the loan, providing borrowers with predictable monthly payments.
A fixture is an item that was initially personal property but has become real property due to its attachment to a building or land in such a way that removal would damage the property.
Flame in the context of communications refers to a publicly posted message, often in an email or online forum, that contains strong opinions or criticisms, sometimes harsh or vitriolic.
A Flash Crash refers to a very sudden and severe drop in security prices, followed by a quick recovery. The term is most famously associated with the nearly 1,000-point drop in the Dow Jones Industrial Average (DJIA) on May 6, 2010.
A flash drive is a data storage device that uses flash memory to store data persistently. It incorporates a USB interface for easy connection to various devices and has replaced many other storage formats due to its portability and ease-of-use.
Flash memory is a type of non-volatile computer storage chip that can be electrically erased and reprogrammed. It is commonly used in devices such as memory cards, USB flash drives, MP3 players, and solid-state drives for data storage and transfer.
A flash report is a management tool used in the USA to quickly highlight key data points that require corrective action.
Flash trading is a form of high-frequency trading (HFT) where certain traders get information about market orders fractions of a second before the general public does. This practice enables them to capitalize on this advance notice of potential trades.
A term with multiple definitions, spanning real estate, finance, bond trading, and general business contexts. The nuanced meanings can significantly impact various industries.
A flat rate, also known as a fixed rate, is a price that remains constant irrespective of the quantity purchased or other considerations. It is commonly used in various fields including advertising and direct marketing.
In industry and labor contexts, 'Flat Scale' refers to a uniform rate of pay that does not take into account the volume, frequency, or other variance factors.
A flat tax is a simple proportional tax system with a single rate. It has no reliefs or exemptions apart from a standard personal allowance, thereby streamlining tax compliance and administration.
A flea market is an open-air market where vendors display and sell used or secondhand goods. These markets often feature a variety of items, including antiques, collectibles, and household goods.
The term 'Fleet Factors' refers to a landmark 1990 court decision in the United States regarding a lender's potential exposure to liability for environmental cleanup if the lender acquires the property by foreclosure.
Flexed Budget Allowance refers to the budgeted expenditure level for each of the variable cost items adjusted to the level of activity actually achieved. This concept is crucial for adjusting budgetary figures based on actual performance.
A flexible budget adjusts budgeted income and expenditure based on changing circumstances and actual activity levels, allowing for a more accurate financial planning and performance measurement.
Flexible manufacturing is a computer-controlled manufacturing process that provides adaptability and flexibility in altering machinery to accommodate various products, thereby allowing rapid production customization at competitive costs.
A flexible manufacturing system (FMS) is an automated production line that can be quickly adapted to produce multiple product lines, enabling companies to lower costs and respond swiftly to changes in consumer demand.
A plan under which employees may make tax-free salary-reduction contributions to a medical or dependent care reimbursement plan, or to purchase group health insurance or life insurance coverage on a pretax basis.
Flexitime (also known as flextime) is a daily work system where employees have the flexibility to choose their starting and ending times within agreed limits, while ensuring they fulfill a minimum number of required work hours.
Flight to quality is an investment strategy where investors shift their capital to the safest possible assets, such as U.S. Treasury bills, to protect against loss during periods of market instability.
Flipping involves buying and then quickly reselling real estate, securities such as IPOs, or other assets for a profit. It relies on the volatility of prices and market efficiency.
In accounting and finance, 'float' refers to various concepts including delayed money processing, publicly held stock proportions, contingency fund allocation, and processes related to financial transactions and securities.
Floater coverage provides insurance for property that moves from location to location, whether on a scheduled or unscheduled basis, ensuring protection regardless of its position.
Floating an issue refers to the process by which a company issues new securities to the public in order to raise capital. This process involves several steps, including registering the securities with regulatory bodies and underwriting the issue.
Floating Assets, also known as Current Assets, are the assets in a company's possession that is expected to be converted into cash within a year.
A floating charge is a security interest over a pool of changing assets of a business, which ‘floats’ until it crystallizes and attaches to specific assets of the company.
The floating currency exchange rate, also known as a flexible exchange rate, is the movement of a foreign currency exchange rate in response to changes in market forces of supply and demand. The value of a country's currency is determined by market conditions rather than by any direct intervention by the central or national government.
Floating debt refers to short-term financial obligations that are continuously refinanced. It is commonly seen in both business and government sectors and includes instruments such as commercial paper and Treasury bills.
A floating exchange rate is a type of exchange rate regime wherein a currency's value is allowed to fluctuate due to market forces without direct governmental control. However, governments and central banks may intervene to stabilize the currency if necessary.
Floating securities refer to securities that are actively traded or outstanding in the market, often bought for quick profits or persistently remaining unsold after issuance.
In the context of financial markets, the term 'Floating Supply' refers to the total number of securities, such as municipal bonds or stocks, which are presently available for purchase by investors in the open market.
A floating-point number is a number in which the decimal point is allowed to float, represented by a base and an exponent. It allows for the efficient and accurate representation of a wide range of values, mimicking scientific notation.
A floating-rate loan has an interest rate that is not fixed and can fluctuate over the loan's tenure. These loans are often tied to short-term market indicators like the London Inter Bank Offered Rate (LIBOR).
A Floating-Rate Note (FRN) is a type of bond with a variable interest rate, often based on the London Interbank Offered Rate (LIBOR), adjusting periodically to reflect market conditions.
A Floating-Rate Note (FRN) is a type of debt instrument with a variable interest rate that adjusts periodically based on a benchmark interest rate, such as the LIBOR or the federal funds rate.
Flood insurance is an insurance policy that covers property damage due to natural flooding. This type of insurance is offered by private insurers but is encouraged and subsidized by the federal government. Buyers using a federally related mortgage to purchase a property in a floodplain are required to purchase flood insurance.
A floodplain is a level land area that is subject to periodic flooding from a contiguous body of water, such as a river, lake, or ocean. Floodplains are delineated by the expected frequency of flooding and are important in urban planning, agriculture, and environmental management.
In finance, a floor refers to the minimum interest rate set by the lender on a loan or other obligation. This ensures that the interest rate will not fall below a certain level, which provides a safety net for lenders' returns. It contrasts with a cap, which sets an upper limit on the interest rate.
A designated period during which salespeople, especially in real estate, are required to stay in the office to handle inquiries from prospective clients who do not have an existing relationship with the firm.
A floor loan represents the minimum amount that a lender is willing to advance to a borrower, typically within real estate or construction financing.
A floor plan is an architectural drawing depicting the layout, dimensions, and arrangement of rooms, as well as other physical features at one plane level of a building. It serves as a crucial tool in planning, designing, and constructing buildings.
Coverage for a lender who has accepted property on the floor of a merchant as security for a loan. It indemnifies the lender if the merchandise is damaged or destroyed, with the policy being on an all-risk basis.
An arithmetic relationship of the total square feet of a building to the square footage of the land area, relevant in urban planning and zoning.
A floppy disk is a thin, flexible plastic disk with a magnetic coating, usually encased in rigid plastic, once popular for computer data storage and transfer. It has been largely supplaneously to compact discs, memory cards, and USB drives.
Flotation refers to the process of launching a public company for the first time by inviting the public to subscribe for its shares. This process is also known as 'going public'.
Flotation (Floatation) Cost refers to the expenses incurred by a company when it issues new stocks or bonds. These costs include underwriting fees, legal fees, registration fees, and other associated expenses.
Flotation costs refer to the expenses a company incurs when it issues new securities, including underwriting, legal, registration, and accounting fees. These costs are crucial for companies to consider when planning to raise capital through new stock or bond issues.
Flow of funds in economics refers to the way in which capital moves across various sectors of the economy, transferring from savings surplus units to savings deficit units through financial intermediaries.
A flowchart is a diagram representing the sequence of logical steps required to solve a problem. It uses conventional symbols to indicate processes and decisions.
Understanding fluctuation is crucial within the realms of finance, economics, and business operations. It encapsulates the variability seen in prices, interest rates, and broader economic indicators, often influencing decision-making processes for investors, businesses, and policymakers.
A fluctuation limit is a boundary placed by commodity exchanges on the daily price movements of futures contracts. Once a commodity reaches this limit, no further trading can occur for that day.
Originally referred to a swindler who fled hurriedly from a business situation after their modus operandi (MO) had been discovered by the locals; now refers to a shady business, often operating out of a post office box or accommodation address, that cannot be located when its merchandise or product proves unsatisfactory.
A Fly-Out Menu is a secondary menu that appears to the side when you click a menu item, often used to enhance navigation on websites and software applications.
A transportation term indicating that the price includes delivery at the seller's expense to a specified point and no further.
A focus group is a form of market research where a small group of people, usually 5-10, is asked about their attitudes toward a product, concept, advertisement, idea, or packaging. This detailed feedback helps in improving or tailoring products to market needs.
A focused factory is a form of production operation limited to a very small number of products aimed at a specific target market. This approach necessitates a smaller investment and facilitates the development of greater expertise compared to a more diversified manufacturing operation.
A Folder is a digital metaphor used to organize files on a computer, similar to how physical folders organize documents in a file cabinet. Initially termed directories in DOS, the nomenclature was later adopted by Windows 95 and subsequent versions.
A follow-up letter is a sales letter sent to someone who has made an inquiry, inviting them to make a purchase. It is part of the inquiry conversion process, often used for high-value items such as automobiles or insurance policies.
A font refers to the set of characters in one size and style of a typeface. For example, Garamond is a typeface, while 14-point Garamond Italic is a font.
The Food and Drug Administration (FDA) is a federal agency of the United States Department of Health and Human Services responsible for protecting and promoting public health by ensuring the safety, efficacy, and security of human and veterinary drugs, biological products, medical devices, food supply, cosmetics, and products that emit radiation.
The Food and Drug Administration (FDA) is an administrative agency of the U.S. Department of Health and Human Services that regulates the safety and quality of foodstuffs, pharmaceuticals, cosmetics, and medical devices.
The bottom margin of a printed document, which repeats on every page and can include text, pictures, automatic consecutive page numbers, date, and time according to a specific computer program.
In accounting, 'footing' refers to the process of totaling a column of numbers to ensure accuracy in financial statements. This fundamental task is essential in maintaining the integrity of financial data.
An explanatory narrative and numerical data that follows the financial statements of a company and is integrally related to them.
The term 'For Your Information' (FYI) serves as a common prefix in memos and finance, often indicating that no action is required on the contents or that a quote is not a firm offer to trade at that price.
A for-profit corporation is a business entity established with the primary goal of earning profit for its shareholders. Unlike non-profit organizations, for-profit corporations operate to generate financial returns for their owners.
Forbearance is a situation where a lender decides not to exercise its legal right to foreclose on a property when a borrower defaults. Instead, the lender opts to renegotiate the terms of the loan to offer temporary relief to the borrower.
Force majeure refers to unforeseen and unavoidable events that prevent or delay the fulfillment of contractual obligations.
A forced sale is an urgent sale of assets, typically conducted under significant pressure or compulsion, where the seller has limited opportunity to obtain a fair market value. Examples include sales conducted through foreclosure, bankruptcy, or instances of duress.
Forced saving occurs when consumers are restricted from spending all their income on current consumption. This can be self-imposed, contractually obligated, or enforced by government policy.
Forecast Reporting involves the inclusion of projected figures within a company's annual accounts and reports, such as future sales numbers, to provide an estimated vision of potential performance and growth.
Forecasting involves estimating future trends. Stock market forecasters try to predict the direction of the stock market by relying on technical data of trading activity and fundamental statistics on the direction of the economy. Economic forecasters attempt to predict the strength of the economy, utilizing complex econometric models to make specific predictions of future levels of inflation, interest rates, and employment.
An overview of the legal process where a lender seeks to recover the balance of a loan from a borrower who has stopped making payments by forcing the sale of the property used as collateral for the loan.
