What is 'Backflush Costing' Backflush costing is a product costing system generally used in a just-in-time inventory environment. Backflush costing delays the costing process until the production of goods is completed. Costs are then "flushed" back at...
What is a 'Back-End Load' A back-end load is a fee (sales charge or load) that investors pay when selling mutual fund shares, and the fee amounts to a percentage of the value of the share being...
What are 'Back-To-Back Letters Of Credit' Back-to-back letters of credit consist of two letters of credit (LCs) used together to finance a transaction. A back-to-back LC is usually used in a transaction involving an intermediary between the...
What is bail bond and why do people need it
Bail bonds are a type of surety bond that is posted on behalf of a defendant in order to secure their release from custody pending trial. The bail bond is...
What are 'Balance Sheet Reserves' Balance sheet reserves refer to the amount expressed as a liability on the insurance company's balance sheet for benefits owed to policy owners. Balance sheet reserves represent the amount of money insurance...
What is 'Back Months' The available futures contracts for a particular commodity that possess expirations or delivery dates furthest into the future. Also referred to as deferred futures or forward months. Explaining 'Back Months' ...
What is bad debt and how does it affect your credit score
Most people are familiar with the term "bad debt." Generally, bad debt is any debt that has a negative impact on your finances. This can include credit card...
What is 'Bailment' The contractual transfer of possession of assets or property for a specific objective. In bailment, the deliverer of the asset is the bailor, and the receiver is the bailee. In a bailment transaction, ownership...
A backspread is a type of options spread in which the trader holds more long positions than short positions. This strategy can be used to profit when the price of the underlying security moves in either direction. There are...
What is 'Back-to-Back Commitment' A commitment to make a second take-out loan that piggybacks another loan. With a back-to-back commitment, once the terms of the first loan are satisfied, it will be rolled into the second loan....