A statistical measure of the degree to which the movements of two variables are related. It quantifies the direction and strength of the relationship between variables.

An examination of a tax return that is conducted largely by telephone or mail, usually involving substantiation or explanation of only a few items.

In financial contexts, a correspondent refers to a financial organization that regularly performs services on behalf of another institution within markets that the latter finds inaccessible. This commonly involves a depository relationship to cover expenses and streamline transactions.

A correspondent bank in a foreign country offers banking facilities to the customers of a bank in another country. These arrangements are usually the result of agreements, often reciprocal, between the two banks. The most frequent correspondent banking facilities used are those of money transmission.

Corresponding amount refers to an amount in the published financial accounts of a limited company that relates to the previous financial year to provide a basis for comparison.

A corridor is a long, narrow strip of land designated for a specific purpose such as a rail line, highway, pipeline, or overhead power line, facilitating efficient transportation or utility distribution.

The act of affixing one's signature on a contract, such as a loan, in addition to the principal signature of another. Both signers are liable for the loan or other contract.

A cosigner is an individual who agrees to take on the financial obligations of a loan or debt if the primary borrower defaults. This person provides assurance to the lender of repayment.

The expenditure on goods and services required to carry out the operations of an organization. Different methods of defining cost are used in accounting to reflect various aspects of financial reporting and decision making.

Cost absorption involves assigning all costs, both fixed and variable, to the product or service being produced or delivered.

The Cost Accounting Standards Board (CASB) is a regulatory board established in the USA in 1970 by Congress to promote consistency and uniformity in cost-accounting practices among government contractors, facilitating accurate reporting of costs associated with government contracts.

Cost accumulation is the systematic process of gathering costs associated with production activities, allowing businesses to determine the total cost required to manufacture products in an organized manner.

Cost allocation is the process of assigning indirect costs to specific cost objects in a way that reflects resource consumption. This is crucial for making informed decisions, setting prices, and measuring profitability.

Cost and Freight (C&F) denotes a shipping agreement wherein the seller is responsible for covering the cost and freight to transport goods to a specified destination. However, the buyer assumes the responsibility for insurance once the goods are loaded onto the shipping vessel.

Cost Application refers to the allocation of costs to a product, process, or department using a rational allocation basis. For example, rent expense can be allocated to each department based on its square footage.

Cost apportionment, a vital concept in accounting, involves the distribution of costs across various departments, products, or periods based on specific criteria. This ensures that expenses are accurately allocated, enabling precise financial tracking and reporting.

The cost approach is a method of appraising property based on summing the reproduction cost of improvements, minus depreciation, to the market value of the site.

The process of determining the costs of the operations, processes, cost centres, and cost units within an organization.

Cost Assignment or Cost Attribution refers to the procedures by which direct or indirect costs are charged to or made the responsibility of particular cost centers, and ultimately charged to the products manufactured or services provided by the organization.

Cost basis refers to the original price of an asset and is fundamental in determining depreciation as well as capital gains or losses. Typically, it is the purchase price, but in cases of inheritance, it is the market value of the asset at the donor's death.

Cost Behaviour refers to the relationship and changes in total costs as a response to changes in activity levels within an organization, playing a crucial role in breakeven analysis and decision-making techniques.

A cost center is a non-revenue-producing segment of an organization where costs are separately figured and allocated, and for which someone has formal responsibility. Common examples include departments like Human Resources (HR) and IT services.

A cost centre is an area of an organization for which costs are collected for the purposes of cost ascertainment, planning, decision-making, and control.

Cost classification is the process of grouping expenditures according to common characteristics, facilitating the proper allocation and management of expenses within an organization.

Cost codes are standardized numerical systems used in accounting and project management to categorize and track specific types of expenditures.

Cost containment is the process of maintaining organizational costs within a specified budget, focusing on restraining expenditures to meet organizational or project financial targets.

Cost control refers to the techniques used by various levels of management within an organization to ensure that costs incurred fall within acceptable levels. It involves the provision of financial information to management by the accountant and the use of various techniques such as budgetary control and standard costing to highlight and analyze any variances.

Cost control accounts, also known as cost ledger control accounts, are essential for capturing and managing all costs associated with a company's production processes.

The cost convention refers to the basis used for recording costs charged against profit during an accounting period, which can be based on historical cost, current cost, or replacement cost.

Cost depletion refers to the method used to recover the tax basis in a mineral deposit by deducting it proportionately over the productive life of the deposit. It is contrasted with the percentage depletion method.

In a system of activity-based costing, any factor such as the number of units, number of transactions, or duration of transactions that drives the costs arising from a particular activity. When such factors can be clearly identified and measured, they serve as the basis for allocating costs to cost objects.

Cost estimating involves determining the total costs of labor, materials, capital, and professional fees required for a proposed product. This process is crucial in project management, construction, manufacturing, and other sectors where budgeting and financial planning are essential.

Cost estimation is the process of predicting the cost of a project, product, or service by assessing the unit costs of direct costs and overheads for the purposes of planning, control, and pricing.

A Cost Function is a formula or equation that represents how specific costs behave when visualized on a graph. It typically depicts total cost as the sum of fixed costs and variable costs.

A cost item refers to a category of costs incurred by an organization that are similar in nature. These costs are collected together both for reporting purposes and because they can be subjected to similar treatment by the costing system. Examples include rent, consumable materials, and sundry selling expenses.

A comprehensive record-keeping system to maintain the transactions associated with a company's cost accounting. It facilitates detailed tracking of costs and aids in financial control and reporting.

The Cost Ledger Control Account, also known as the Cost Control Account, is an essential component of an accounting system where separate books are maintained for financial and cost records, ensuring the accuracy and integrity of the overall accounting system.

The Cost Method is an accounting technique used by a parent company for investments in subsidiary companies, particularly when ownership is less than 20% of the outstanding voting common stock.

The traditional method of measuring fixed assets where they are valued at their historical cost less accumulated depreciation, with an alternative being the revaluation model.

A cost object is any item for which a separate measurement of costs is desired, including products, services, customers, or specific operations.

A cost objective is the budget limit set for an activity, task, or project, intended to constrain spending within predefined financial boundaries to ensure financial discipline and project feasibility.

The cost of capital is the return, expressed in terms of an interest rate, required by an organization to finance its activities. It can vary depending on the types of capital employed, such as equity share capital or loan capital. A unique weighted average cost of capital (WACC) is often computed for each organization based on their specific mix of capital sources. The cost of capital is frequently used as a hurdle rate in discounted cash flow calculations.

Cost of carry refers to the expenses associated with holding a particular asset over a period of time, which can include storage costs, insurance, and financing.

The effective overall rate of interest that a company pays on its loans, bonds, and other debts, used in calculating the total cost of capital for that firm. This is usually calculated as an after-tax figure.

The rate of return that a company's shareholders expect for holding stock in that company, used as part of the calculation of the total cost of capital for a firm. It represents the opportunity cost to investors of holding shares. The cost can be calculated by a formula dividing dividends per share by the current market value and adding the dividend growth rate.

Cost of funds refers to the interest cost paid by a financial institution for the use of money, including various liabilities such as money market accounts, passbook savings accounts, and CDs.

The Cost of Goods Manufactured (COGM) represents the total production cost of finished goods transferred from a production facility to inventory over an accounting period.

An essential metric in accounting, Cost of Goods Sold (COGS) represents the direct costs associated with the production of goods sold by a company. This value is critical in determining the business's gross profit and provides insights into the efficiency and cost management of production processes.

The total costs incurred to ensure good quality or rectify poor quality. By enhancing quality, managers can reduce costs and boost profits. These costs are categorized into prevention, appraisal, internal failure, and external failure costs.

A key financial metric representing the direct costs to an organization of supplying goods or services, used to calculate gross profit by deducting this figure from sales revenue.

Cost of Sales Adjustment (COSA) refers to modifications made to the cost of goods sold (COGS) to reflect changes in inventory levels, obsolescence, shrinkage, or other factors that may affect the reported cost of sales.

Cost of Sales Adjustment (COSA) refers to an adjustment made to the trading profit of an organization due to a holding gain on the cost of sales, commonly within the framework of current-cost accounting.

A cost overrun occurs when the actual cost of a project exceeds the project budget, requiring additional funding to cover the shortfall. This situation necessitates revisiting financial planning and resource allocation.

A cost pool is an accounting term referring to a grouping of individual costs typically by department or service center. These groupings are used to allocate and better manage indirect costs.

Cost prediction involves forecasting future cost levels based on historical cost behavior using various statistical techniques, such as linear regression, to inform budgeting, decision-making, and strategic planning.

Cost Records refer to documents that provide evidence of the prices at which investments were purchased or the costs incurred in producing goods, providing services, or supporting activities. These records are essential for calculating capital gains and substantiating financial performance.

Cost segregation is the process of accurately classifying assets for federal tax depreciation, which can result in significant tax savings for businesses. This process involves a professional and supportable analysis of the property to separate faster depreciable assets.

A cost sheet is a form used in costing to collect and present all the costs associated with a service, product, process, or cost center, often for management analysis or use in a costing system.

A predetermined level of cost expected to be incurred by a specific cost item in the supply, production, or operation of a service, product, process, or cost centre. Cost standards are often applied to performance standards in order to calculate standard overhead costs.

Cost tracing refers to the process of directly associating costs with specific cost objects such as projects, departments, or products, ensuring more accurate tracking of financial performance.

A cost unit represents a unit of production for which costs are aggregated. It can vary from a single item like a chair or light bulb to a sub-assembly in more complex products like an aircraft wing or gearbox. In cases where individual unit costs are minimal, cost units might be expressed as batches.

Cost-Benefit Analysis is a technique used in capital budgeting that evaluates the estimated costs against the expected benefits of a proposed investment.

Cost-effectiveness refers to the ability to generate sufficient value to offset the associated costs of an activity. In a business context, this value is often interpreted as revenue.

A Cost-of-Living Adjustment (COLA) is an increase in income that keeps up with the cost of living. It is typically used in wage contracts, pensions, social security benefits, and other financial agreements to counteract inflation.

A COLA is an adjustment in wages or benefits intended to offset changes in the cost of living, typically indexed to metrics such as the Consumer Price Index (CPI).

The Cost-of-Living Index is a tool that measures the relative cost of living over time or between different locations. It is typically used to compare the expense required to maintain a certain standard of living across various cities or countries.

A cost-plus contract is an agreement where a supplier is reimbursed for all costs incurred in generating a product or service, plus a specified profit margin. This form of contract is commonly used in situations with unpredictable costs or projects requiring substantial research.

A method to establish the selling price of a product or service by estimating the total cost and adding a percentage mark-up to achieve a profitable price.

Cost-plus transfer prices are set by cost-plus pricing, which includes a mark-up to provide a profit for the supplying division. This method incorporates variable costs and fixed costs for the purpose of setting a transfer price that includes a profit margin.

An agreement on a construction project where the contractor earns a specified percentage profit over the actual costs incurred. This contract type is considered suboptimal due to reduced incentives for cost control. An alternative approach is the cost-plus-fixed-fee contract.

A type of inflation caused by increasing prices, typically resulting from rising costs of production inputs such as raw materials and wages.

Cost-Volume-Profit (CVP) Analysis helps businesses understand how changes in costs and volume affect a company's operating income and net income, providing critical insights for decision-making in financial planning and strategy.

Cost-Volume-Profit (CVP) analysis is a method used by businesses to understand the inter-relationships between cost, volume, and profit. It helps in decision-making by determining the break-even point, analyzing the profit potential of a company, and evaluating the impact of different levels of sales and production.

The cost per unit of production that a firm sustains at varying levels of output.

Cost, Insurance, and Freight (CIF) is a trade term used in international shipping to indicate that the seller covers the cost, insurance, and freight charges up to the destination port.

Techniques and procedures in cost accounting and management accounting to obtain the costs of services, products, processes, and cost centers for decision making, planning, and control.

Costing principles are the fundamental guidelines that direct how costs are recorded and reported in management accounting, ensuring that financial data is accurate and useful for decision making.

A cottage industry is a system of production where goods are manufactured by artisans or workers at their homes rather than in factories. These are often small-scale and involve manual or semi-mechanized operations.

An expert group of economists appointed by the President of the United States to provide counsel on economic policy.

Council tax is a UK local government tax applied based on property valuation, replacing the community charge in 1993–94. It includes various rebates and exemptions depending on occupancy and income.

Counsel refers to an attorney or legal adviser who provides advice or aid concerning legal matters. Counsel can represent clients in court, offer legal opinions, and guide individuals and businesses through legal complexities.

The term 'counselor' is frequently used interchangeably with 'attorney' or 'lawyer' and refers to a professional who offers legal and financial advice. Additionally, counselors may provide services for specific loan programs and advise on financial matters.

A counterclaim is a counter demand made by a defendant against the plaintiff. It is not merely an answer or denial of the plaintiff's allegations; rather, it asserts an independent cause of action in favor of the defendant.

Government economic policies designed to dampen the effects of the business cycle, such as the Federal Reserve Board's action during the early 1980s inflation to raise interest rates and reduce demand.

Counterfeit refers to items or documents that are forged, imitated, or fabricated without authorization, usually with the intent to deceive and pass the imitation off as genuine.

Countermand refers to the action of revoking or retracting a previous order by issuing a new and contradictory directive. It is commonly used in various business contexts where changes in instructions or decisions are needed promptly.

A counteroffer is the rejection of an original offer to buy or sell along with a simultaneous substitute offer. They are commonly encountered in various transactions, particularly in real estate, where factors other than price might be negotiated.

Countervailing credit, often referred to as back-to-back credit, is a form of financing used in international trade that involves two separate but interdependent letters of credit. This type of credit is typically established by an intermediary in trade transactions to facilitate complex trade processes.

Country risk refers to the potential financial losses that can arise when conducting transactions or holding assets in a foreign country due to political or economic instability.

Country screening involves using countries as the basic unit of analysis for market evaluation, allowing businesses to identify the most favorable markets for their products or services.

A coupon can refer to several aspects in the context of bonds, including the dated slip attached to a bond for interest payment collection, the rate of interest paid by a bond, or a general term for certain bonds and notes in the US Treasury markets.

A bond issued with detachable coupons that need to be presented to a paying agent or the issuer to receive semiannual interest payments. These are bearer bonds, meaning the interest is payable to whoever holds the coupon.

The Coupon Collector's Problem is a classic example in probability theory concerning how many trials are expected to collect all possible outcomes. This can be represented by the process of collecting coupons, each of which represents a unique outcome in a finite sample space.

Coupon stripping is a financial process in which the coupons are stripped off a bearer security and then sold separately as a source of cash, with no capital repayment; the bond, bereft of its coupons, becomes a zero coupon bond and is also sold separately.

Couponing is an advertising method where vouchers are distributed to consumers allowing discounts on merchandise or service purchased within a stated period of time. Couponing provides an incentive for increasing sales.

A court bond, also known as a judicial bond, is a form of surety bond that ensures compliance with a court's orders and protects against potential financial losses from legal proceedings.

A court that is required by law to maintain a record of its proceedings, including orders and judgments, and has the authority to imprison and levy fines.

Covariance is a statistical measure that indicates the extent to which two variables change together. A positive covariance suggests that the variables tend to increase or decrease in tandem, whereas a negative covariance indicates that as one variable increases, the other tends to decrease.

A covenant is a legally-binding promise made in a deed that can be enforced as a contract. It often involves agreements or restrictions related to financial obligations or land use.

A covenant not to compete is a contractual promise to refrain from conducting business or professional activities similar to those of another party, found primarily in employment, partnership, or sale of a business contracts.