What is Overapplied Overhead? Definition: Overapplied overhead refers to the amount of money that goes unused despite being assigned to finance the production of units for a given accounting period. Such costs are synonymous with companies with robust manufacturing operations. Such companies allocate overhead expenses at the beginning of each accounting period on an estimated
What is the Nominal GDP? Definition: Nominal GDP (Gross Domestic Product) denotes the value of all goods and services produced in a year in a country. The financial measure is calculated using current market prices and expressed in monetary terms. The financial metric acts as an assessment of the economic production of an economy as
What Is A Multinational Corporation? Definition: A multinational corporation is a firm with facilities, assets and operations in more than one country. While such corporations maintain a centralized head office, the robust nature of their operations sees them maintain and operate bases in a number of countries. Consequently, such corporations are often referred to as
What are the Paradise Papers? Definition: Paradise Papers refers to a massive leak of financial documents that showed the great lengths, politicians, world leaders, and celebrities are willing to go, to hide wealth in offshore accounts and avoid paying taxes. A German newspaper, Süddeutsche Zeitung, is the perpetrator behind the leak that contained 13.4 million
What is Non Controlling Interest? Definition: Non controlling interest is an ownership stake whereby an individual or an institution owns less than 50% stake in a company or business. The lack of controlling interest means an investor cannot control management decisions, but he or she can influence them. Most shareholders in public companies hold non-controlling
What is Perfectly Elastic Demand? Definition: A perfectly elastic demand is an economic situation where there is a direct relation between the supply or demand and pricing. In this case, a slight change in price will often result in a significant change in demand. For instance, a small price increment might cause demand for products
What is Perfectly Inelastic Demand? Definition: Perfectly inelastic demand is an economic situation whereby, demand and supply is not in any way influenced by pricing. In a perfectly elastic market, the demand and supply never changes even with erratic changes in pricing. Inelastic refers to the static quantity of supply and demand, even with price
What is a Price Floor? Definition: Price floor denotes the lowest amount that consumers can pay for goods and services. Likewise, the term is used to denote the minimum wage that employers can pay employees for service rendered. Understanding Price Floor Example Often called price supports, price floor plays a crucial role in ensuring price
What Is Present Value Table? Definition: A present value table is a chart used to calculate the current value of a stream of money to be received in the future. The table multiplies coefficients by the future cash flows to calculate the present value of the cash flow stream. Present value measures the current value
What is Price Level? Definition: Price level denotes the cost of goods and services in an economy. It is the average of all prices of an entire spectrum of products and services. Economists pay close watch to price level as it helps shed more light on consumers’ purchasing power. The analysis also helps in the