What Are Step Costs? Step costs are expenses that are constant for a given level of activity, but increase or decrease once a threshold is crossed. Step costs change disproportionately when production levels of a manufacturer, or activity levels of any enterprise, increase or decrease. When depicted on a graph, these types of expenses will
What Is the Stephen M. Ross School of Business? The Stephen M. Ross School of Business is the business school at the University of Michigan. Founded in 1924 and located in Ann Arbor, MI, the school offers both undergraduate and graduate programs. The Stephen M. Ross School of Business is well-known for its Master of
What Is a Step-Up Bond? A step-up bond is a bond that pays a lower initial interest rate but includes a feature that allows for rate increases at periodic intervals. The number and extent of the rate increase, as well as the timing, depends on the terms of the bond. A step-up bond provides investors with
What Is a Step-Up in Basis? Step-up in basis refers to the adjustment in the cost basis of an inherited asset to its fair market value on the date of the decedent’s death. Cost basis is what determines the taxes owed, if any, when the asset is sold. Cost basis starts with the price paid
What Is a Standard Floor Limit? The term “standard floor limit” refers to the transaction size beyond which merchants are required to obtain authorization when processing a credit card transaction. For example, a merchant with a standard floor limit of $100 would need to authorize any transaction for more than $100. Due to the rise
What Is Standardization? Standardization is a framework of agreements to which all relevant parties in an industry or organization must adhere to ensure that all processes associated with the creation of a good or performance of a service are performed within set guidelines. Standardization ensures that the end product has consistent quality and that any
What Is a Standard Lot? A standard lot is the equivalent of 100,000 units of the base currency in a forex trade. It is one of the three commonly known lot sizes; the other two are mini-lot and micro-lot. In the world of finance, lot size refers to a measure of a quantity or increment of
What Is Standard of Living? Standard of living refers to the quantity and quality of material goods and services available to a given population. Key Takeaways Standard of living is the material well being of the average person in a given population. It is typically measured using gross domestic product (GDP) per capita. Standard of
What Is a Standby Letter of Credit (SLOC)? A standby letter of credit (SLOC) is a legal document that guarantees a bank’s commitment of payment to a seller in the event that the buyer–or the bank’s client–defaults on the agreement. A standby letter of credit helps facilitate international trade between companies that don’t know each
What Is a Standby Note Issuance Facility (SNIF)? A standby note issuance facility (SNIF) is a type of credit facility, often offered by a bank, that will guarantee payment to the lender if the borrower defaults. In this way, a standby note issuance facility (SNIF) ultimately acts as a form of insurance for a lender. They are most often
