Consumer goods are items purchased by individuals for personal or household use, as opposed to capital goods, which are used to produce other goods. These goods are essential for daily life and can be classified into durable, non-durable, and services.
Interest incurred on personal debt and consumer credit, which is not deductible for tax purposes after 1990.
The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. It is a critical indicator used to understand inflation and the cost of living.
Consumer products are tangible personal properties that are typically used for personal, family, or household purposes.
Laws designed to aid retail consumers of goods and services that have been improperly manufactured, delivered, performed, handled, or described. Such laws provide the retail consumer with additional protection and remedies not generally provided to merchants and others who engage in business transactions.
Consumer research is the process of gathering and analyzing data about consumers to understand their behaviors, preferences, and motivations. This research employs techniques such as focus groups, in-depth interviews, inquiry tests, aided recall interviews, consumer surveys, and attitude testing. The primary goal is to determine factors that influence consumer buying habits and decision-making processes.
Consumer sovereignty refers to the ability of consumers to obtain exactly what they want by paying a price that is satisfactory to suppliers. It is considered a prerequisite of properly functioning markets. However, sovereignty can be limited by factors such as lack of information, constraints on prices and supplies, and third-party influences on purchasing decisions.
Consumer surplus is an economic concept that represents the excess value a consumer derives from consuming goods over the amount paid for those goods.
Consumer-driven healthcare (CDHC) encompasses a variety of health insurance plan designs aimed at providing insurance protection while encouraging participants to be cost-conscious about their healthcare choices.
Consumerism focuses on public concern over the rights of consumers, the quality of consumer goods, and the honesty of advertising. The ideology gained significant momentum in the 1960s after President John F. Kennedy introduced the Consumer Bill of Rights.
The term 'consummate' refers to the completion or finalization of a business arrangement, contract, or event. It signifies the successful conclusion of a particular process or agreement.
Consumption represents the total spending by individuals or a nation on goods and services during a specific time period. This macroeconomic concept reflects the usage of resources, and although many durables like clothing, appliances, and automobiles are consumed over a longer period, their expense is accounted for within the consumption cycle.
The consumption function is a mathematical relationship between the level of consumption and the level of income. It posits that consumption is greatly influenced by income.
The Consumption Possibility Line represents the maximum amounts of consumption possible at varying levels of disposable income, or of Gross Domestic Product (GDP).
Consumption, Investment, Government expenditures (C&I or C&I&G) are key components of the Gross Domestic Product (GDP), used to measure a country's economic performance.
A container ship is a type of vessel specifically designed for the transportation of cargo packed into large, standardized containers. It revolutionizes the shipping industry by allowing for efficient and flexible movement of goods.
Contingencies in accounting refer to potential gains and losses that are known to exist at the balance-sheet date. These outcomes will only be known after one or more future events occur or do not occur. The way these contingencies are handled in financial statements depends on their nature, and specific accounting standards provide the required guidance.
A contingency is a potential event or circumstance that is uncertain but could have either positive or negative consequences on an entity's financial situation or operations. It is often considered in risk management and financial planning.
A contingency fund is an amount reserved for a possible loss, such as those caused by a business setback. Contingency funds and other reserves set aside are not deductible for tax purposes.
Contingency Leadership Theory, advanced by Frederick E. Fiedler, posits that successful leadership styles are determined by the specific situation or context within an organization. According to this theory, effective leadership depends on an alignment between leadership style and situational variables, rather than a one-size-fits-all approach.
Contingency planning is an approach used to anticipate future events that, while unlikely, are possible. It involves creating a plan of action to respond effectively if these events occur. Examples include crisis management and disaster recovery plans.
A contingency table is a type of data matrix presenting sample observations classified by two or more characteristics, such as categories or attributes.
The Contingency Theory of Management Accounting posits that there is no single universally acceptable management accounting system suitable for all organizations or consistently effective within an organization across all situations. Instead, accounting systems must adapt to prevailing circumstances, such as shifts in the environment, competition, organizational structures, and technology.
A Contingent Agreement is a contract arrangement in which certain obligations depend on the occurrence of a particular event. These agreements often come into play during mergers and acquisitions, real estate transactions, and litigation settlements.
A possible asset that arises from past events and whose existence will be confirmed only by the occurrence of one or more uncertain future events, beyond the control of the accounting entity.
A contingent beneficiary is an individual or entity entitled to receive the proceeds or benefits of a trust or estate only when a specified event occurs, such as the death of a named beneficiary.
Contingent consideration refers to a payment made as part of a business acquisition that is contingent on future events. This concept is commonly used in earn-out agreements.
A contingent contract is a legal agreement that becomes enforceable only upon the occurrence or non-occurrence of a specific event. This form of agreement is commonly used in various business transactions, including mergers and acquisitions.
A contingent fee is a payment to a lawyer for legal services that depends, or is contingent, upon winning the case. Often indicates a percentage of the awarded amount.
A contingent gain is an economic benefit that may be realized when a favorable event occurs, though it is not guaranteed and depends on future uncertainties.
Either a possible obligation arising from past events that will be confirmed by one or more uncertain future events not wholly within an entity's control, or a present obligation from past events that cannot be measured reliably or is not probable to require settlement.
A contingent liability refers to potential financial obligations that a business may incur due to actions of parties other than its own employees, notably when independent contractors are involved.
A contingent loss is an economic loss that may occur in the future depending on the outcome of a specific event, typically related to a contingent liability.
An element of rent that varies based on certain conditions, such as sales, usage, interest rates, or inflation indexes, rather than being fixed at the inception of the lease.
A right conferred by federal law on employees and their spouses and dependents to continue participation in an employer-sponsored healthcare plan even after their coverage is terminated due to specified events such as death or divorce of the employee.
Courses offered by colleges or other institutions that are not for degree credit. Many professions require licensed individuals to take a certain number of continuing education hours or units (CEUs) each year.
Continuity in marketing refers to the existence of a similar theme throughout an advertising or marketing campaign. It also pertains to the length of uninterrupted media schedules, ensuring consistent and cohesive messaging over time.
Continuity of Life refers to the characteristic of a corporate structure where the organization continues its existence despite the death, incapacity, bankruptcy, retirement, resignation, or expulsion of its members.
A continuous audit is an in-depth examination of financial records conducted on a recurring basis throughout the accounting period, aimed at detecting and correcting mistakes and improper accounting practices before the reporting year-end.
A budget for a future month or quarter, which is added to an organization's budget as the past month or quarter is dropped. The entire period's budget is revised and updated as necessary, prompting management to continuously consider short-range plans.
The ongoing process of improving an organization's goods or services, with the aim of increasing customer satisfaction. In a highly competitive environment, organizations need to actively seek ways to reduce costs, improve quality, and eliminate waste.
An industrial process that continuously receives raw materials and processes them through to completed units. Hospital healthcare is a 24-hour-a-day, 7-day-a-week continuous process.
Continuous production is a manufacturing process where raw materials are constantly fed into the production system to create a standardized product.
In motivational theory, continuous reinforcement refers to the process of providing an individual with positive feedback on a continuous basis. It is a method often used to enhance and maintain desirable behavior by offering immediate and consistent reinforcement after each occurrence of the target behavior.
Continuous stocktaking is a system of inventory management designed to regularly verify stock levels by counting and reconciling physical stock with accounting records.
A system of costing applied to industries where production methods are continuous, such as in electricity generation and bottling. This system uses average costing to determine unit cost by dividing the total production cost by the number of items produced.
Continuously Contemporary Accounting (CoCoA) is an accounting methodology that values assets and liabilities based on their current market conditions rather than historical costs.
A method of accounting that evaluates a company's financial position based on its ability to adapt to changing environments and recognizes general price level changes. While favored by some academics, it has seen limited interest among practitioners.
A contra account is an account used in a general ledger to reduce the value of a related account. These entries are used to adhere to accounting principles such as matching and conservatism.
Contra accounts are used in financial accounting to offset balances between accounts, often simplifying the settlement process and providing clearer financial statements.
A contra-asset account is used in accounting to accumulate amounts that reduce the value of a related asset account, such as accumulated depreciation being subtracted from the property, plant, and equipment asset account.
A contract is a legally binding agreement that arises from an offer and acceptance, meeting certain legal criteria and compliance for enforceability.
A contract carrier is a transportation service that accepts people or goods from one or more shippers under an agreement for compensation, typically providing specialized services and equipment tailored to meet the unique needs of its customers.
Contract cost refers to the total cost incurred in fulfilling a long-term contract, typically calculated using contract costing techniques.
Contract costing is a costing technique used for long-term contracts like civil engineering projects, where costs are allocated on a contract-by-contract basis. It addresses the complications in determining annual profits for incomplete contracts through the valuation of work in progress.
A financial derivative that allows traders to speculate on the price movement of underlying assets without owning them.
A derivative contract in which one party agrees to pay another the difference between the current value of an underlying asset and the value at the time the contract was made.
A contract undertaken by a self-employed individual, distinguishing it from a contract of employment. Understanding the distinction is crucial for tax purposes.
The contract interest rate, also known as the face interest rate or nominal interest rate, is the stated annual interest rate on a loan or bond, before any adjustments for compounding or inflation.
A Contract of Employment defines the relationship between an employer and an employee, outlining duties, control measures, and compensation.
A contract of indemnity in property and liability insurance aims to restore the insured to their original financial condition after suffering a loss, without allowing for profit from the loss.
The contract price in an installment sale, for tax purposes, is generally defined as the selling price less the existing mortgages assumed by the buyer. This definition is crucial for correctly determining the taxable portion of payments received from the sale.
The contract rate, also known as the face interest rate, refers to the interest rate stated on a financial instrument, such as a bond or loan, which dictates the amount of interest the issuer will pay periodically to the holder.
Contract Rent refers to the amount of rent that has been explicitly stipulated in a lease agreement between a tenant and a landlord.
In the context of finance and economics, contraction can refer to various scenarios including the distribution of assets and economic downturns. It is important to distinguish these different contexts to understand the implications fully.
A contractor is an individual or company who contracts to do work for another party. Independent contractors take on specific tasks while maintaining control over the means and methods of executing the job.
Contrarian investing is a strategy that involves going against prevailing market trends by buying assets that are performing poorly and selling those that are performing well. Contrarian investors believe that markets often overreact to news and developments, leading to opportunities for buying low and selling high.
Contributed capital, also known as paid-in capital, refers to the total value of cash and other assets that shareholders have directly invested in a company in exchange for stock. This equity portion represents funds that are raised and used for the growth and operational needs of the business.
A financial statement that presents income using the marginal costing layout, emphasizing the distinction between variable and fixed costs, and aids in understanding the profitability of products based on contribution margins.
The contribution margin is a key metric in marginal-costing systems, helping organizations determine the additional profit earned when production surpasses the breakeven point.
The contribution margin ratio, also known as the contribution-to-sales ratio, production-volume ratio, or profit-volume ratio, is a financial metric that shows the relationship between a product’s contribution margin and its sales value. This ratio is essential for ranking products based on their relative profitability.
In cost accounting, Contribution Profit Margin is the excess of sales price over variable costs. It provides an amount to offset fixed costs, thus contributing to gross profit.
Contribution to capital refers to the funds or assets provided by shareholders or owners to a company, which increases the company's equity but does not constitute income for tax purposes.
Contributions in the context of finance and taxation refer to payments made by individuals or businesses, either for charitable purposes or as required unemployment taxes. Understanding the implications of these contributions is crucial for effective financial planning.
A principle of law recognizing that injured persons may have contributed to their own injury. This concept can significantly impact the ability to recover damages in personal injury cases.
A contributory pension is a type of pension scheme where both the employee and the employer contribute to the employee's pension fund.
A contributory pension plan is a retirement savings plan in which both the employee and employer contribute funds. These plans are designed to provide financial security to employees after retirement by pooling resources from both parties.
A control account is a general ledger account that summarizes the total balances of subsidiary ledgers, ensuring accuracy and efficiency in financial reporting.
Control accounts are ledger accounts structured to equal the aggregate balances of a large number of subsidiary accounts, serving functions such as consolidating data and providing cross-verification of subsidiary record accuracy.
Control refers to the ability of one entity to direct the financial and operating policies of another entity or to obtain the economic benefits from an asset. This term is central to the consolidation of financial statements and the conceptual framework for financial reporting.
A control key on a computer keyboard functions primarily in combination with other keys to execute specific commands. On PC keyboards, these include the Ctrl and Alt keys in addition to the Shift key. The Apple equivalents are the Command and Option keys.
A control period is the span of time for which budgeted figures are compared with actual results. Splitting up the financial year into control periods makes control of the financial figures more manageable.
An amount paid above the average market value of shares to gain enough ownership to set policies, direct operations, and make decisions for a business. Contrast with Minority Discount.
Control risk, also known as internal control risk, refers to the possibility that misstatements in a company's financial statements will not be prevented or detected on a timely basis by the internal control system. It is an essential component of audit risk and requires an in-depth assessment during the auditing process.
The principle that managers should only be held responsible for the costs and investments they have the ability to influence directly. Understanding and applying the controllability concept is crucial for effective managerial accountability and performance evaluation.
Controllable Contribution refers to the sales revenue of a division, less those costs that are controllable by the division's manager. It is a key metric for assessing the performance of divisional managers.
Controllable costs are expenses that can be directly influenced and managed by a particular level of management. Responsibility is assigned to specific personnel who can influence these costs within an organization.
A measure of the capital employed that is under the direct influence of a divisional manager, used to accurately assess performance.
In standard costing or budgetary control, a controllable variance is a variance regarded as controllable by the manager responsible for that area of an organization. The variance occurs as a result of the difference between the budget cost allowance and the actual cost incurred for the period.
A controlled corporation is a company whose policies and major decisions are determined by another firm, which owns more than 50% of its voting shares.
A controlled economy is a type of economic system where the government exerts significant control over production, distribution, and consumption of goods and services, rather than relying on market forces. This model is often associated with socialist and communist economies.
A Controlled Foreign Company (CFC) is a foreign-based corporation that is controlled by residents of the home country, allowing individuals or companies to potentially shift profits and reduce their tax liabilities.
A Controlled Group is defined as two or more corporations whose stock is substantially held by five or fewer persons. Included in this category are brother-sister groups, parent-subsidiary groups, combined groups, and certain insurance companies. These corporations are subject to special rules for computing income tax, the alternative minimum tax (AMT) exemption, the accumulated earnings credit, and the environmental tax exemption.
In the USA, the chief accounting executive of an organization responsible for financial reporting, taxation, and auditing but typically leaving the planning and control of finances to the treasurer.
An interest in a company that gives a person or another company control of it, usually through ownership of more than half the voting shares. Controlling interest can also be achieved with fewer shares if they are widely dispersed.
CONUS stands for the Continental United States, referring specifically to the 48 contiguous states and the District of Columbia. This designation is often used in federal regulations to differentiate from OCONUS, which includes Alaska, Hawaii, and other U.S. territories.
Convenience food refers to processed food products and prepared meals designed for fast and easy consumption, appealing to individuals who lack the desire or time to cook.
Frequently purchased consumer items that provide convenience in terms of time savings and utilitarianism. Examples include hair spray, shaving cream, and tissues.
