Term of the Day

fixed cost

A periodic cost that remains more or less unchanged irrespective of theoutput level or sales revenue, such as depreciation, insurance, interestrent, salaries, andwages.
While in practice, all costs vary over time and no cost is a purely fixed cost, theconcept of fixed costs is necessary in short term cost accounting. Organizations withhigh fixed costs are significantly different from
...
Learn more about this term
Usage Example
It is good to put a fixed cost on your product and not allow for any negotiations if you know that the demand is high.
Term of the Day

fiscal year

A 12-month period over which a company budgets its spending. A fiscal year does not always begin in January and end in December; it may run over anyperiod of 12 months. The fiscal year is referred to by the date in which it ends. For example, if acompany's fiscal year ends October 31, 2006, then everything between November 1, 2005 and October 31, 2006 would be referred to as FY 2006. Not...
Learn more about this term
Usage Example
At the same time, Congress has not appropriated funds for the Defense Department for the 2013 fiscal year that began on October 1.
Notable Quotable
"Several times every year, a weighty and serious investor looks long and with profound respect at Coca-Cola's record, but comes regretfully to the conclusion that he is looking too late. The specters of saturation and competition rise before him." 
-Article in Fortune Magazine, 1938