All Finance terms definitions in the Accounting category

What is Customer debts ?

Definition of Customer debts Customer debts are due as a result of purchasing products are usable and/or do not appreciate. Having high levels of consumer debt are not typically great for the average personal because it improves the load on one’s sources of earnings to maintain regular payments. If not handled well, consumer debt can direct […]

What is Compounding ?

Definition of Compounding Compounding is the process where the value of a smart financial commitment increases because of the earnings on a smart financial commitment, both capital gains and attention, generate attention over the years. Brief Explanation of Compounding This rapid development occurs because the overall development of a smart financial commitment along with its major generates […]

What is Commercial paper ?

Definition of Commercial paper Commercial paper is an unprotected, short-term debt instrument issued by an enterprise. is normally issued at a rebate from face esteem and reflects winning market interest rates. Developments on it once in a while go any more extended than 270 days. Brief Explanation of Commercial paper It is used normally for […]

What is Asset under Management ?

Definition of Asset under Management Asset under Management or AUM is the total value of assets that are held and managed by a financial institution or investment company on behalf of investors. It shows how much of the investor’s money is controlled by the financial institution. Big investors do not invest and control their money […]

What is Total Return ?

Definition of Total Return One of the major goals of making investments is to earn profit returns from it. The total return income generally includes capital gains, interests ,distributions and dividends received over the period. Total Return =Dividends+ interests +distributions+ capital gain- capital loss Total return can be divided into two categories, regular interest or dividends […]

Definition of Traditional cost Accounting

What is Traditional cost Accounting ?

Traditional cost Accounting Traditional cost Accounting is a costing system in which all the manufacturing cost is assigned to the product being made. Traditional costing is also known is conventional costing. Elements of manufacturing cost includes Labor, material and other expenses. Traditional cost Accounting Material cost: Cost of material used in any product. Labor cost: […]

What is Performance Fee ?

Performance Fee A Performance Fee is a payment designed to a finance administrator for generating beneficial earnings. Performance Fee It is often measured as a portion of financial commitment earnings, often both noticed and unrealized. It is mostly a feature of the hedge finance industry, where Performance Fees have created many hedge finance supervisors among […]

What is Overhead Ratio ?

Definition of Overhead Ratio Operating costs consist of marketing, office rent, professional fees, utilities, insurance, equipment servicing, devaluation or plants or equipment, etc. Brief Explanation of Overhead Ratio It is a metric that allows organizations to evaluate costs as a percentage of revenue. In common, an organization strives to achieve the lowest operating costs possible […]

What is Overhead Rate ?

Definition of Overhead Rate Overhead Rate is basically the management expenses of a company that need to operate general corporate functions, and which cannot be for sure related to any revenue-generating activities or units of outcome (such as products to be sold). Brief Explanation of Overhead Rate It is often difficult to evaluate precisely the amount […]

What is Overhead ?

Overhead Overhead is an accounting term that represents all continuous business costs, not such as or related to immediate work, immediate materials or third-party costs that are charged straight to customers. Overhead It costs can be set, significance they are the same monthly, or varying, significance they increase or reduce based upon on their action stage. […]