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What Is Manufacturing Resource Planning (MRP)? Manufacturing Resource Planning II (MRP II) is an information system utilized by businesses. Manufacturing Resource Planning evolved from early Materials Requirement Planning systems by adding employee and financial data integration. This system aims to centralize, integrate, and process information efficiently for effective decision-making in scheduling, design engineering, inventory control … Leggi tutto

What Is an On-Us Item? An on-us item is a check or draft that is presented to the bank where the check writer has the funds on deposit, as opposed to the depositor’s bank (although in some cases both check writer and depositor may happen to use the same bank). The check can then be … Leggi tutto

What Is a Wrap Account? A wrap account is an investment portfolio that is professionally managed by a brokerage firm for a flat fee that is charged quarterly or annually. The fee is based on total assets under management (AUM). It is comprehensive, covering all administrative, commission, and management expenses for the account. Wrap fees … Leggi tutto

Stock investors constantly hear about the wisdom of diversification. This simply means don’t put all your eggs in one basket. Diversification helps reduce risk and generally leads to a better return on investment. That said, there are many ways to diversify. How you choose to do it is up to you. Your goals for the future, your appetite for risk, … Leggi tutto

Deflation is a decrease in the general price level of goods and services in a country. It is the opposite of inflation, which is when general price levels in a country are rising. In the short-term, deflation impacts consumers positively because it increases their purchasing powerallowing them to save more money as their income increases … Leggi tutto

Typically, deflation is a sign of a weakening economy. Economists fear deflation because falling prices lead to lower consumer spending, which is a major component of economic growth. Companies respond to falling prices by slowing down their production, which leads to layoffs and salary reductions. This further lowers demand and prices. However, for a period … Leggi tutto

What Is an Allowance for Bad Debt? An allowance for bad debt is a valuation account used to estimate the amount of a firm’s receivables that may ultimately be uncollectible. It is also known as an allowance for doubtful accounts. When a borrower defaults on a loan, the allowance for bad debt account and the … Leggi tutto