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

Category: O

OPEN INFLATION

The rise in the cost of products and services as a result of spending trends.

OPEN REPO

A repurchase agreement that does not set a date for repurchase and that can be terminated by either party at any time. Rates are adjusted each day, based on current market rates.

OPENING BALANCE SHEET

The initial figures used in a financial plan. For established businesses, these figures are based on the balance sheet from the previous accounting period. For new businesses, the figures are based on

OPERATIONAL PERFORMANCE

The performance of the company against prescribed standards, such as compliance with regulations, waste reduction, productivity, etc.

OPT OUT

Explicit instruction not to send marketing materials to an individual.

OPTION HOLDER

A buyer of options who has yet to exercise or sell an option.

ORGANIZATIONAL POLITICS

Selfish pursuit of individual agendas by members of an organization, with no regard to the impact on the organization?s stated goals.

ORIGINATION FEE

This charge is imposed by a lender on a borrower to cover costs incurred during the mortgage application.

OUTPLANT

Facility that is far from the main plant.

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.

OBJECT COST

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

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