Acceptable Quality Level – Explained

by TheBusinessProfessor | Feb 23, 2025 | Operations, Project, & Supply Chain Management

What is Acceptable Quality Level (AQL)?Goods are sampled or inspected in order to check their quality. AQL is the maximum number of defective products that is acceptable when inspecting a sample size. There are seven levels of inspections as stipulated by ISO 2859....

Accelerator Theory – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is the Accelerator Theory?In economics, accelerator theory is a theory that draws attention to the relationship between the increase in investments, income, and demand. It maintains that investments in a company increase when demand increases for the...

Accounting Standard – Explained

by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting

What is an Accounting Standard?An accounting standard refers to a set of guidelines, rules and principles set up by a regulatory board or the government that serves as framework for accounting policies and practices. In the United States, generally accepted accounting...

Acceleration Clause (Loan Agreement) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is an Acceleration Clause?How Does an Acceleration Covenant Work?How an Acceleration Covenant Works What is an Acceleration Clause?An acceleration covenant or an acceleration clause refers to provision used by a lender to demand repayment...

Accelerated Dividend – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles

What is an Accelerated Dividend?An accelerated dividend is an amount of money paid by a company before a forecasted change in dividends occur. It is often a special dividend, a lump-sum cash payment that is paid when an adverse change is likely to occur, such as...

Abnormal Spoilage – Explained

by TheBusinessProfessor | Feb 23, 2025 | Operations, Project, & Supply Chain Management

What is Abnormal Spoilage?An Abnormal spoilage refers to the excess amount of waste or destruction of inventory beyond the expected level.

Absorption Costing & Variable Costing – Explained

by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting

What is Absorption Costing?Absorption costing is a costing method in which all costs attributed to the production of a product are estimated. This costing method entails a full estimation of total expenses incurred in manufacturing a product. Direct costs such as...

Absolute Value – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles

What is Absolute Value?An absolute value has different meanings in different contexts. In business, an absolute value refers to a valuation method used in measuring the financial status or strength of a company. This method of business valuation uses Discounted Cash...

Absolute Return – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is Absolute Return?An absolute return refers to appreciation or depreciation that an asset accrues over a given period of time. It is the evaluation of the performance of an asset in relation to how much gain or loss it has made and incurred over a period of...

Absolute Rate (Interest Rate Swap) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is the Absolute Rate?An absolute rate refers to the fixed portion of an interest rate swap that is expressed as a percentage without reference to the interest rate swaps premium or discount. An absolute rate is otherwise known as an absolute swap yield. An...