Absorption costing
A method of costing that assigns indirect costs (overheads) to given cost centres.
Allocation of resources
The method by which the resources available to an economy are divided between the alternative uses. In market economies resources are allocated to those with the financial ability to pay for them. In command economies the allocation decisions are made by the state or agencies of the state.
Articles of association
A document stating the regulations covering the internal organization of a company. This document must be submitted to the Registrar of Companies as part of the process of registration.
Assets
The possessions of a business that contribute to the value of the business.
Audit
The scrutiny of the accounts of a business by a qualified third party to ensure they give a true and fair view of the state of the business.
Auditor
The person who carries out an audit.
Balance of payments
The summary of all transactions between the residents of a country with the residents of other countries.
Balance sheet
A stating summarizing the assets and liabilities of an organization.
Barter
The exchange of goods and services for other goods and services.
