Premium is the difference between the selling price and the fact value of a bond/stock, when the bond/stock is sold for more than its face value.
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- Useful life
Useful life is an estimate of the expected productive life, also called service life, of the asset. Useful life may be expressed in terms of time, units of activity...
- Cost reconciliation schedule
Cost reconciliation schedule is a schedule that shows that the total costs accounted for equal the total costs to be accounted for equal the total costs to be accounted for.
- Land improvements
Land improvements are structural additions made to land. Examples are drive ways, parking lots, fences, landscaping, and underground sprinklers.
- Master budget
The term “budget” is actually a shorthand term to describe a variety of budget documents. All of these documents are combined into a master budget. The master budget is a set...
- Internal rate of return (IRR)
Internal rate of return (IRR) is the interest rate that will cause the present value of the proposed capital expenditure to equal the present value of the expected net annual cash flows.
- Direct and indirect fixed costs
A profit center may have both direct and indirect fixed costs. Direct fixed costs relate specifically to one center are incurred for the sole benefit of that center.
- Direct labor quantity standard
The direct labor quantity standard is the time that should be required to make one unit of the product. This standard is especially critical in labor-intensive companies.