The value of an asset in the books of accounts after charging for depreciation. The net value (net block) of fixed assets.

A precaution designed to prevent the accidental erasure or alteration of a file; in the case of floppy disks this is easily achieve by attaching a label to a hole at the side.

1) To transfer the balance of an asset account to an expense account as a debit to the P & L A/c. 2) The loss of or failure to recover or realize the value of an asset.

A reduction in the recorded value of an item of stock to comply with the principle of valuing stock at the lower of cost or net realizable value. May also be applicable in the case of fixed assets and investment where the book value is reduced to its realizable value.

A second mortgage includes payments on the first mortgage, usually assurable at a considerably lower rate of interest. A second charge on the assets which are already subject of a first mortgage.

Word Processor.

The sum total of direct and indirect manufacturing costs. It equals prime cost plus manufacturing overheads but excludes administrative costs, general office overheads and distribution and marketing expenses.

Anything that can compete internationally with others of the same king. Generally, excellent and of superior standard.

The International Bank for Reconstruction and Development, an organization administering economic aid among member nations.

Refers to workers who are unable to maintain a standard of living above the poverty level for want of sufficient earning. Marked by little savings, poor health, little education and slum-like living conditions.

The ratio between current assets and current liabilities. This is an idex of liquidity of a system and shows the ability of the business to meet its current obligations. This ratio = 2/1 for a normal healthy situation.

A fund created for the purpose of financing manufacturing or service activities or to control purchases or stores operations. In a manufacturing system operating working capital equals cost of inventory holding plus work-in-process plus finished stock plus book debts plus cash held for day to day operations.

Current assets minus current liabilities. This is the net working capital which is considered for financing by the bank.

An asset that is not a capital one; is part of current assets – intended finally for conversion into sales for revenue in the short period, say, within the Accounting Year.

Insurance benefits covering lost wages and medical costs of employees who become ill or get injured during the course of their work. Usually regulated by such statutes as “the workmen’s compensation act.”

The method of getting rid of unwanted and excessive workforce from a company’s payroll by offering incentives to them to resign or retire early. One common method is to offer voluntary retirement schemes to non-essential employees.

The value that one attaches to work and freedom of work. A term in job evaluation.

A unit of measure, often generally accepted for calculating average cost, time or efficiency. This serves as a common measure for comparative study. Also called ‘a cost unit’ or “activity centre”.

A generic term for those methods, including method study and work measurement, which are designed to evaluate human work in all its contexts. Used for setting up incentive schemes to workers and for rate fixing of product and operations.

An assigned position for work in a shop or office, especially a place where the worker has command of a machine or works as part of production team.