The on-sale date is a pivotal term within the publishing industry, representing the date when new issues of a periodical are scheduled for public availability. This date governs the production schedule, including printing and distribution to newsstands.
Oncost refers to the additional costs incurred beyond the direct expenses associated with employing personnel or handling and storing direct materials. These include wages oncost as well as materials and stores oncost.
One-hundred-percent location refers to the optimal location for a retail establishment within a local market area, where the business would achieve maximum sales volume compared to other possible locations.
A one-time buyer is a customer who has made only one purchase from a retailer or service provider and has not returned for subsequent transactions. Understanding one-time buyers is crucial for businesses aiming to increase customer retention and repeat sales.
A rate paid by an advertiser who uses less space than is necessary to qualify for a discount. The one-time rate, therefore, is a full-cost advertising rate without any discounts.
An onerous contract is a contract in which the unavoidable costs of fulfilling the obligations exceed the expected economic benefits, potentially requiring compensation to the other party if the terms are not met.
The term 'online' refers to being connected to a computer network, especially the Internet. This state contrasts with 'offline' and allows users to access a multitude of resources and services.
Online Analytical Processing (OLAP) is a powerful technology used in the realm of business intelligence to analyze data efficiently from multiple perspectives. It enables quick retrieval of information and facilitates complex business queries and reports.
OLAP enables users to extract specific types of data from multidimensional databases and analyze that information in multiple ways. It's useful for answering detailed and complex queries regarding products, sales, and marketing costs.
Online databases are digital repositories accessible via the internet that store and manage information transmitted by telephone lines, microwaves, and other electronic means. These databases can display information on monitors or as printouts and are utilized in various fields such as accounting, finance, business law, and more.
Online trading involves the buying and selling of stocks or other securities over the Internet without the need for a physical broker, leading to lower fees and faster transactions.
The term 'Open' varies in meaning across different fields such as Banking, Finance, Securities, and Computers. It generally signifies the initiation of an action or status that is currently active and not yet completed.
An open account is a type of credit agreement between a buyer and a seller where the seller provides goods or services to the buyer with the expectation of receiving payment at a later date. It is also referred to as an unpaid credit order or open credit.
Open architecture is a type of computer architecture whose details are made fully public, allowing other manufacturers to create compatible hardware and software. The architecture of the original IBM PC is an example of open architecture.
An open bid is an offer to perform a contract by quoting a price for materials or work, while retaining the right to reduce that price to match competitors' bids. It is commonly utilized in governmental contracts.
Open dating refers to the clear and understandable indication of an expiration date on a retail-packaged food item that is subject to deterioration. This aids consumers in determining the product's useful life and ensures food safety and quality.
Open distribution refers to the distribution model where the same merchandise can be sold within a specified region or area by different dealers. This model imposes no restrictions on the number of products a dealer can sell, offer for sale, or deliver to retailers, and allows dealers to carry competitive lines.
An open economy is one in which foreign investment, imports, and exports are easily facilitated and play a significant role in the nation's economic activities.
The Open Enrollment Period is a limited timeframe, typically lasting between 10 to 30 days, during which employees who have not previously enrolled in specific types of insurance are allowed to do so. Certain exclusions may apply, such as for preexisting conditions.
A single insurance policy covering all insurable property of specified type(s) at all locations of an insured business. Ideal for businesses with several locations.
An open house is a method of showing a home for sale whereby the home is left open for inspection by interested parties. It frequently occurs on weekends, with banners placed on the lot to attract attention.
Open housing refers to the condition under which housing units may be purchased or leased without regard for such factors as the ethnic or religious characteristics of the buyers or tenants, ensuring equal housing opportunities for all.
Open interest represents the total number of outstanding contracts in a commodity or options market, which have not yet been exercised, closed out, or allowed to expire.
An open listing is a non-exclusive property listing given to multiple real estate brokers. The seller agrees to pay the commission only to the broker who introduces a ready, willing, and able buyer that meets the terms of the listing.
OMV refers to the value of an asset or property in the open market, where a willing buyer and a willing seller, both knowledgeable about the item, complete a transaction without undue pressure.
Open Market Value (OMV), also known as Market Value, refers to the estimated price at which an asset or property would trade in a competitive auction setting, where the conditions for a fair sale are met, and the parties involved are well-informed and willing.
An open mortgage is a mortgage that has matured or is overdue, making the property susceptible to foreclosure at any time. It is a financial situation where the borrower has failed to make timely payments, removing any safeguards against lender actions to reclaim the property.
An open operating system (OS) is a computer operating system that is designed to run on multiple hardware platforms and processors, thereby providing flexibility and portability for application software and computer data.
Open outcry is a method of trading on a commodity exchange where traders shout out their buy or sell offers. When a trader shouts he wants to sell at a particular price and another trader shouts he wants to buy at that price, the two traders have made a contract that will be recorded.
A trading position where a trader holds commodities, securities, or currencies that are bought but unsold or unhedged, exposing them to market fluctuations until the position is closed or hedged.
Open source software is software with source code that anyone can inspect, modify, and enhance. It is different from proprietary software, which has its source code concealed from the public and can only be modified by personnel from the developing organization.
Open stock refers to retail items available for purchase individually or in a specific pattern, where there is no guarantee they will always be in stock, though they can typically be reordered if not discontinued.
An open union is a labor organization that allows membership to any qualified worker without requiring initiation fees, high dues, examinations, or other barriers to membership.
An open-door policy is a management practice that encourages open communication between employees and management, and a national trading stance that ensures equal treatment for foreign and domestic entities.
The term 'Open-End' has several applications in the fields of broadcasting and production. In broadcasting, it refers to flexible scheduling and local advertising opportunities. In production, it describes the design of certain envelopes.
Open-End Credit is a revolving line of credit offered to consumers by banks, savings and loans, and other lenders, allowing for repeated borrowing up to a specified limit.
An Open-End Investment Company (commonly known as a mutual fund) is an investment vehicle that continually issues new shares and allows investors to redeem shares at any time.
An open-end lease is a leasing agreement that includes a provision for an additional payment after the leased property is returned to the lessor, to account for any fluctuations in the property's value.
An Open-End Mortgage refers to a type of mortgage under which the borrower can borrow additional funds from the lender, typically up to a specified ceiling.
Open-Market Operations (OMO) are activities conducted by the securities department of the Federal Reserve Bank of New York, often referred to as the 'Desks', under the direction of the Federal Open Market Committee (FOMC). These operations involve the buying and selling of government securities to regulate the money supply within the economy.
Open-market rates refer to the interest rates on various debt instruments bought and sold in the open market, which are directly responsive to supply and demand. These rates differ from the discount rate set by the Federal Reserve Board.
Open-to-buy (OTB) is a budgetary control system used by retailers to manage inventory purchases. It allows retailers to order merchandise based on actual sales trends while providing flexibility to adjust for unexpected changes in sales, markdowns, and other factors. The OTB method ensures that inventory levels are optimized, reducing the risk of overstock or stockouts.
The term 'Opening' in finance and business can refer to the initial price at which a security or commodity starts trading at the beginning of the day, or a short time frame in which market opportunities arise, often referred to as an 'opening in the market' or 'a window of opportunity.'
Opening entries are unique journal entries created when a business starts up, capturing all assets, liabilities, and owners' equity as a beginning point for accounting records.
Opening Stock represents the inventory held by an organization at the beginning of an accounting period, including raw materials, work in progress, and finished goods. It plays a crucial role in assessing the financial performance and stock levels of a company.
The Operating and Financial Review (OFR) provides a comprehensive overview of a company’s performance, financial condition, and future prospects, offering stakeholders detailed insights beyond standard financial statements.
The Operating and Financial Review (OFR) provides an overview where directors interpret financial statements and discuss the business's performance, covering both positive and negative aspects.
An operating budget is a comprehensive financial statement displaying projected revenues and expenses in a business. This budget helps in day-to-day decision-making and ensuring the effective allocation of resources.
Operating costing, also known as service costing, is a cost management technique employed to ascertain the cost of delivering services within an organization or to the public. It is particularly applicable in industries engaged in continuous operations, such as electricity generation, transportation, and healthcare.
The operating cycle is the average period of time between acquiring inventory and receiving cash from its sale, reflecting the time required for a business to turn its investments into cash flows.
An operating environment is a shell surrounding the Disk Operating System (DOS) of a personal computer. It functions like a graphical desktop, providing a menu interface from which users can select and run PC applications.
Operating expenses refer to the amount paid to maintain a property or run a business, including costs such as property taxes, utilities, and hazard insurance. It excludes financing expenses, depreciation, and income taxes.
Operating expenses are the costs and operating revenues are the income incurred and generated by an organization in the normal course of business, excluding any extraordinary items.
Operating Income, also known as Operating Profit or Operating Earnings, is a measure of a company's profitability that excludes interest and income tax expenses. It is used to evaluate the performance of a company's core business activities.
A form of ownership in mineral property in which the owner is responsible for operating costs. Royalties, production payments, and net profit interests are not operating interests.
Operating Leverage is a financial concept that measures the proportion of fixed costs in a company's cost structure and how these fixed costs amplify the effect of changes in sales on operating income.
Operating performance ratios are financial analysis tools that measure a company's ability to generate profit from its operations during an accounting period. Higher ratios indicate greater profitability.
Operating profit (loss) is the difference between the revenues of a business and the related costs and expenses, excluding income or expenses from sources other than its regular activities and before income taxes; synonymous with net operating profit (loss) and operating income (loss).
Operating ratios are financial metrics used to measure and analyze a company's operational efficiency by relating various income and expense figures from the profit and loss statement to each other and to balance sheet figures.
An operating statement is a financial report provided to management, detailing the performance of specific areas of operation over a selected budget period. It includes production levels, costs incurred, and revenues generated, and is compared with budgeted amounts and previous performances.
Operating statements are financial reports detailing the cash flow of a business or property. These reports are crucial for understanding the financial performance and health of the entity.
An operating system (OS) is a program that controls a computer and makes it possible for users to enter and run other programs. It helps manage hardware resources and provide various services to software applications.
An operational audit is a thorough review of an organization's activities to assess whether they are being carried out efficiently and effectively, and to identify opportunities for improvement.
Operational control refers to the power of management over the daily activities of a business, guiding its day-to-day operations, resources, and performance.
Operational objectives are short-term organizational goals that are necessary to achieve longer-term tactical and strategic aims. Managed by supervisory personnel, these objectives focus on delivering immediate results.
Operational risk refers to the risk of direct or indirect loss resulting from inadequate or failed internal processes, systems, or from a wide variety of external events. It is a significant focus in financial regulation and has influenced several important guidelines such as the Basel Accords and the Turnbull Report.
A detailed analysis of operational variance within the framework of standard costing, highlighting how it accounts for the difference between adjusted current standards and actual performance.
Operations Research (OR) is a discipline that deals with the application of advanced analytical methods to help make better decisions. It involves the development and use of mathematical models to improve understanding and manage large-scale systems.
In a legal context, an opinion refers to the reason given for a court's judgment, finding, or conclusion. This document explains the term, provides examples, answers frequently asked questions, and offers references for further study.
An opinion leader is an individual whose ideas and behavior serve as a model to others, influencing the attitudes and behavior changes of their followers.
An Opinion of Title is a certificate, generally from an attorney, which provides an assessment of the validity of the title to property being sold. It serves as a basis upon which title insurance companies decide to insure the title.
Opinion shopping refers to the practice of a company seeking out an auditor who is willing to approve its financial statements without qualifications, even when they do not meet generally accepted accounting principles.
A term frequently used on Wall Street to describe the use of borrowed funds by individuals or companies to increase the return on invested capital, as well as an acronym for the options pricing model.
Opportunity cost is the economic cost of an action measured in terms of the benefit foregone by not choosing the next best alternative. It plays a critical role in decision-making by considering the returns that could have been earned through alternative investments or actions.
OPT, short for 'decide or make a choice,' is a term used in decision-making processes where an individual or entity selects one alternative over another. For example, an individual may opt to lease rather than purchase facilities.
Optical Character Recognition (OCR) is a technology that enables the conversion of different types of documents, such as scanned paper documents or images captured by a digital camera, into editable and searchable data.
Optical Character Recognition (OCR) is a technology used to convert different types of documents such as scanned paper documents, PDFs, or images captured by a digital camera into editable and searchable data.
A cognitive bias that leads individuals to be overly optimistic about the outcomes of their actions, frequently resulting in underestimation of risks, costs, and duration, while overestimating benefits.
An option is a financial instrument that gives the holder the right, but not the obligation, to buy or sell an asset at a predetermined price before or at the expiration date.
An Option ARM is a type of adjustable-rate mortgage that allows the borrower to select from different payment options each month, including fully amortizing payments, interest-only payments, and minimum payments resulting in negative amortization.
An option holder is someone who has bought a call or put option but has not yet exercised or sold it. Call option holders want the price of the underlying security to rise, while put option holders want it to fall.
An Option to Purchase is a contract that grants one the right (but not the obligation) to buy a property within a set timeframe, for a specified price, and subject to certain conditions.
An irrevocable election made by a landlord to charge value added tax on exempt supplies of buildings (rents). This enables the otherwise irrecoverable input VAT on costs relating to the property to be reclaimed by the landlord against the output tax charged on the rents.
An optionee is an individual or entity that receives or purchases an option, which grants them the right, but not the obligation, to buy or sell an asset at a predetermined price within a specified time period.
An optionor is a party who grants or sells an option, allowing another party, known as the optionee, the right but not the obligation to execute a transaction, typically involving the purchase or sale of an asset, under specified terms within a defined timeframe.
The term 'Or Better (OB)' is an indication on an order ticket for a limit order to buy or sell securities that instructs the broker to execute the order at a price better than the specified limit price if a better price is available.
An order refers to an instruction or command to perform a particular action, applicable across various contexts such as commercial law, investments, law, and trade. It signifies a formal directive requiring compliance according to defined terms.
An order bill of lading (often abbreviated as B/L or BoL) is a negotiable document that serves as a receipt for shipped goods and provides proof of shipment. More importantly, it can be transferred to another party, granting the holder rights to the goods.
An order card is a printed form, often designed as a business reply card, used by companies to facilitate orders from customers. It allows customers to specify products or services they wish to purchase.
Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.