Tag: cost
Imputed Interest
What is an 'Imputed Interest' Imputed interest is used by the Internal Revenue Service (IRS) as a means of collecting tax revenues...
Variable Cost Ratio
What is the 'Variable Cost Ratio' The variable cost ratio is an expression of a company's variable production costs as a percentage...
Last In, First Out (LIFO)
What is Last In, First Out (LIFO)?
LIFO is an inventory accounting method in which the most recently acquired items are the first ones to...
Lease Payments
What is 'Lease Payments' A line item under long-term debt on a balance sheet that indicates the value of future lease payments...
Layered Fees
What is 'Layered Fees' Two sets of management fees that are paid by an investor for the same group of assets. This...
Lead Time
What is lead time and why is it important
In the business world, lead time is the amount of time that elapses between the start...
Learning Curve
What is the 'Learning Curve' A learning curve is a concept that graphically depicts the relationship between cost and output over a...
Lambda
What is 'Lambda'
The ratio of the percentage change in an option contract's price to the percentage change in the option's underlying price. Lambda is...
Earnest Money
DefinitionAn earnest payment is a specific form of security deposit made in some major transactions such as real estate dealings or required by some...
Earnings Before Interest & Tax (EBIT)
What is 'Earnings Before Interest & Tax - EBIT' An indicator of a company's profitability, calculated as revenue minus expenses, excluding tax...