Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: Finance

OVERHEAD ABSORPTION

Applying an amount of overhead costs that reflects the expense of producing goods or services.

OVERPACK

An outer container that protects one or more inner containers.

OVERTIME PREMIUM

Known as ?time and a half?, refers to the fact that employees earn 50% more than their usual hourly rate when working overtime.

NOMINAL YIELD

The income that is derived from a security.It is stated as a percentage of its purchase price.

NONACCEPTANCE

Rejection by a drawee due to a failure to honor the instrument of negotiation (a bill of exchange)

NONBUSINESS INCOME

Income that is received from passive sources such as the appreciation of a real estate property and as such they fall under the tax related category of income.

NONCONFORMANCE

Also referred to as defect, it occurs when specific requirements are not fulfilled

NONDELIVERY

The failure to deliver goods or legal instruments in compliance with the law or custom

NONEXEMPT EMPLOYEES

Workers who are not exempt from a rule or policy. With respect to wage and hour laws, employees who are nonexempt are to follow workplace regulations and are eligible for overtime pay

NON-INTEREST INCOME

Monetary gain for financial institutions through charges on investment transactions.

NON-OPERATING EXPENSE

Activities such as the insurance and maintenance of assets that are not directly involved in the operation of the business, but result in an additional expense for the firm.

NONRENEWAL

Refuseal by the insurer or the insured to renew the coverage on an insurance plan. Usually done on the policy’s expiration date or its anniversary.

NORTH ATLANTIC TREATY ORGANIZATION (NATO)

The North Atlantic treaty of 1949 led to the formation of this military alliance between the 26 member countries with the intention of combating the spread of communism. It now makes a

NOTARIZED DOCUMENT

A document which has been authenticated by the signature of the relevant individual and the signature of the notary public who acts as a witness to the signature. This document is then

NOTICE PERIOD

The period within which the delivery of the contract has to be accepted by the contract owner. This period usually lasts between three and six weeks before the expiration of the contract.

NUMBER OF DAYS OF INVENTORY ON HAND

The average number of days that an item spends as a part of an inventory, expressed as a ratio. It is used to determine the quality of inventory control and thus is

OBJECT COST

The total sum of direct and indirect costs to the manufacturer on a product or service provided.

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