Accounting glossary - dictionary_5

Tham khảo tài liệu accounting glossary - dictionary_5, tài chính - ngân hàng, kế toán - kiểm toán phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả
Nội dung trích xuất từ tài liệu:
Accounting glossary - dictionary_5http://www.ventureline.com/glossary.aspFIXED ASSET TURNOVER measures managements ability to generaterevenues from investments in fixed assets. FAT considers only the firmsinvestment in property, plant and equipment and is extremely important in highasset firms such as manufactures and telecommunications companies.Generally, the higher this ratio:  the smaller the investment required to generate sales, thus the more profitable the firm.  indicates the firm has less money tied up in fixed assets for each dollar of sales revenue.A declining ratio may indicate that the firm has over-invested in plant, equipment,or other fixed assets.FIXED BUDGET is a budget that is not adjusted for changes in the volume ofservice. See FLEXIBLE BUDGET.FIXED CHARGE is those expenses incurred each time a batch of product isproduced. Primarily consists of ordering cost for the raw material, engineeringcosts for machine setup and preparation for the production run, and work orderprocessing cost; also known as SETUP COST.FIXED CHARGE RATIO is calculated: total fixed costs/total expenses.FIXED COST is a cost that does not vary depending on production or saleslevels, such as rent, property tax, insurance, or interest expense.FIXED COSTS are operating expenses that are incurred to provide facilities andorganization that are kept in readiness to do business without regard to actualvolumes of production and sales. Fixed costs remain relatively constant untilchanged by managerial decision. Within general limits they do not vary withbusiness volume. Examples of fixed costs consist of rent, property taxes, andinterest expense.FIXED FEE is a set price for the completion of a project. It is easier for thecustomer to budget, but provides higher risk for the contractor due to costoverruns.FIXED OVERHEAD is those costs like rent, utilities, basic telephone, loanpayments, etc., that stay the same whether sales go up or down. Variableoverhead, on the other hand, are those costs which vary directly with production.FIXED EXPENSES in the operation of a business are those expenses thatremain the same regardless of production or sales volume, i.e. do not fluctuatewith sales volume. Contrast with VARIABLE EXPENSES. 81http://www.ventureline.com/glossary.aspFLASH REPORT provides highlights of key information promptly to theresponsible managerial accountant; also called EXCEPTION REPORT.FLAT INTEREST refers to charging interest on the full original loan amount,rather than on the declining balance. With group based loans, for example, acommon interest rate is 3% per month, flat, for 4 months. This means that a$100 principal amount lent is multiplied by 3%, and then by 4 months to come upwith $12 in interest. Thus, $112 would be repaid over 4 months in equalinstallments.FLAT LEASE is a lease where the cost is fixed for a specific period of time.FLAT RATE is a per unit price that remains constant regardless of the volumepurchased.FLEXIBLE BUDGET is based upon different levels of activity. It is a very usefultool for comparing actual costs experienced to the cost allowable for the activitylevel achieved, i.e. it is dynamic in nature as compared to static. A series ofbudgets can be readily developed to fit any activity level. Flexible budgetingdistinguishes between fixed and variable cost, thereby allowing for a budget thatcan be automatically adjusted to the level of activity actually attained.FLOAT is 1. the time between the deposit of checks in a bank and when theamount is truly accessible; 2. the amount of funds represented by checks thathave been written but not yet presented for payment. Some entities will play thefloat by writing checks although there are insufficient funds actually on deposit tocover the checks; and, 3. to issue new securities through an underwriter.FLP is Family Limited Partnership.FMR see FINANCING MARGIN RATIO.FOOTING, in accounting, is the sum of a column of figures.F.O.B. (FREE ON BOARD) is a transportation term that indicates that the pricefor goods includes delivery at the seller’s expense to a specified point and nofurther. The FOB term is used with an identified physical location to determine 1)the responsibility and basis for payment of freight charges, and 2) the point atwhich title for the shipment passes from seller to buyer.The FOB location terms,Origin and Destination, may be qualified by modifiers. The modifier determinesthe payment of the transportation charges. Modifiers denote nothing about thetitle of the goods or filing of claims. The most three common modifiers are:Collect, Prepaid & Add, and Prepaid & Allow. Collect: The carrier collects thetransportation charges from the buyer. Prepaid & Add: The seller prepays thetransportation charges, but adds the charges to the invoice for reimbursement 82http://www.ventureline.com/glossary.aspfrom the buyer .Prepaid & Allow: The seller prepays the transportation chargesand they are already included in the contract price.F.O.B. DESTINATION is where the seller retains title and control of goods untilthey are delivered and the contract of carriage has been completed. The sellerselects the carrier and is responsible for the risk of transportation.FOB POINT OF ORIGIN is where the supplier is responsible for all shippingcosts to the point of having the goods loaded unto the vessel for shipment to itsdestination. The purchaser, from that point forward, is responsible for all furthershipping costs to the point of destination, e.g., insurance, transportation, etc.FOLIO, dependent upon application, is a. a book (or manuscript) consisting oflarge sheets of paper folded in the middle to make ...