LEASE PAYMENTS
The amount or value the lesser should pay during the lease term. It is a line item under long-term debt that is indicated in a balance sheet. The lease holder provides the lease payments on a regular basis. To determine the value, add the rent charge, the depreciation charge, and applicable taxes. Depreciation charge is calculated by subtracting the Net Capitalized Cost and Residual Value, then divide it by the term (typically in months).
Lease payments vary between companies or dealers. Even if the firms are in the same industry, it is not advisable to compare the lease-payment figures they offer. It is more appropriate to compare long-term debt in general.
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Property Tax
Local governments assess property tax on real estates. The tax is often based on the property’s value.
Onerous Contract
A contract that produces products or services for a bigger amount that would be anticipated profit. A lease contract is an example of onerous contr ...
Overhead
It is an accounting term that refers to all current business expenses not including o direct labor, direct materials or third-party expenses which ...
Substitute
Product or service replacing and satisfying the need of a consumer. This can be perfect or imperfect, depending on whether the substitute partially ...
Materials Requirement Planning - MRP
A production planning and inventory control system designed to manage manufacturing processes and production. A software based integrated informati ...
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