A mortgage on an asset to get repayment. The asset is signed over to the creditor so they can sell it if they must.A charge is registered for the asset […]

The times interest and lease expenses are paid by earnings. It shows the margin of safety based on how likely the borrower is to default. If it is a high […]

Overhead expenses that are related to production capacity but not the level of output. It can be rent, interest, and insurance. Refer to fixed charge .

The cost that is unchanged but comes up periodically. The output and revenue do not affect it. It could be depreciation , insurance, interest, rent, salary, and wages.

Depositing money at higher interest than savings with imposed conditions. It affects the amount, frequency,and period. AKA time deposit .

A system of a countries currency comparing it to other currencies. A fixed rate is used that the government decides on. It is the opposite of floating exchange rate .

Similar to fixed costs. It is a cost that do not include noncash items.

An input factor that won’t change in a period of time.

A profit from the interest on investments.

A fund with little risk and lower profit that invests in CDs and bonds. It has a fixed income that is more stable than a riskier investment.

Money in prefered shares, certificates on deposit, and bonds that give a fixed income . If inflation is high than the value goes down making it a good idea when […]

A share that gives fixed income regularly. It can be a bond, certificate of deposit , perferred stock or any other kind of investment. Common stock is not included becasue […]

A trust where trustees have no power of distribution and must follow the instructions of the testator.

When stock replenishment is ordered at regular times. The amount ordered changes but the interval doesn’t. It compares the maximum stock and the stock at hand to decide how much […]

Inventory when stock is watched regularly at intervals and if it falls below a level a reorder is placed. This is different than continuous stock intervals.

This term applies to the known debts and obligations of a business.

Prices that will not change in the manufacturing cost . It can be depreciation on equipment for example.

When inventory is watched and refreshed when the amount goes below a level. This is monitored continuously for reorder.

A cost that doesn’t change. It can me rent, insurance, or an office expense.

A material that handles chutes and drag lines.

PREMIUM payable by an INSURED for an INSURANCE contract that remains constant during the payment period. See also FLEXIBLE PREMIUM .

A contract that negotiates a price that cannot be changed. It is negotiated for a reasonable rate . It can only be changed if a rule is placed in the […]

A fixed price contract that lets both upward and downward revision of price. It is based on the stated contract price .

A fixed price contract with upward revision for price if it fluctuates in a certain way that is listed in the contract.

A fixed price contract with changes to the price and profits. It is decided by a formula using total cost and negotiated cost as well as actual and target costs […]