What Are Nonparametric Statistics? Nonparametric statistics is a statistical inference method focusing on rankings rather than numbers or underlying distribution assumptions. With nonparametric statistics, data are not expected to come from specified models determined by a small number of parameters. Examples of such models include the normal distribution model and […]
What Is Absorption Costing? Absorption costing is an accounting method and reporting standard that tracks and allocates expenses associated with a manufacturing process to distinct products. It is sometimes called full costing. As an accounting method, it captures all fixed and variable costs associated with manufacturing a particular product. The […]
What Is a Deferred Annuity? A deferred annuity is an insurance contract where savers contribute money and defer their income stream until later, usually upon retirement. The contract with an insurance firm is usually structured to pay the owner a regular income or a lump payment at some point in […]
What is an Efficiency Ratio? An efficiency ratio is a financial metric that measures a company’s internal ability to effectively manage its assets and liabilities. There are a number of ratios used in corporate finance to assess a company’s or financial institution’s operational efficiency. Ultimately, these ratios assess a company’s […]
What Is a Phantom Stock Plan? A Phantom Stock Plan is a form of employee compensation where the benefits of stock ownership are awarded without actual shares being given. A phantom or shadow stock plan provides many of the benefits of stock ownership to selected personnel without actually granting them […]
What Is An Asset Protection Trust (APT)? An Asset Protection Trust (APT) is a self-settled Trust intended to shield an estate and assets from creditors, lawsuits, or legal judgments. An asset protection trust (APT) is a type of trust that holds an individual’s assets in order to protect them against […]