Contribution and Covenant: Difference between pages

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imported>Doug Williamson
(Expand first & second definitions.)
 
imported>Doug Williamson
(Removed broken link to Will Spinney article)
 
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1. ''Cost and management accounting.''
1.


In cost and management accounting, total contribution is Revenues less Variable costs.
A formal legal agreement to take, or not to take, certain actions.




2. ''Cost and management accounting.''
2.


Contribution per unit is the surplus that arises from producing and selling one unit of production.
In loan documentation, a promise given by the borrower to take, or not to take, specified actions relevant to the borrower's creditworthiness.<ref>http://www.treasurers.org/node/8842</ref>  For example, a ''financial covenant'' to maintain a minimum ratio of net worth to debt.




3. ''Pensions.''
3.
 
A payment made into an occupational pension scheme by the employer or the employee.  
In relation to pension funds, the credit strength of the sponsoring employer and its commitment to the pension fund.




== See also ==
== See also ==
* [[Break even point]]
* [[Accounting exposure]]
* [[Contributions]]
* [[Asset cover]]
* [[Fixed cost]]
* [[Breach of covenant]]
* [[Management accounting]]
* [[Compliance]]
* [[Margin of safety]]
* [[Contingent covenant]]
* [[Variable cost]]
* [[Covenant-lite]]
* [[Credit risk]]
* [[Event of default]]
* [[Financial covenant]]
* [[Generally accepted accounting principles]]
* [[Incurrence covenant]]
* [[Interest cover]]
* [[Loan agreement]]
* [[Maintenance covenant]]
* [[MCT]]
* [[Net worth]]
* [[Non-financial covenant]]
* [[Restrictive covenant]]
* [[Waiver]]
 
 
==References==
<references/> Treasury Essentials: Covenants, The Treasurer, March 2013


[[Category:Accounting,_tax_and_regulation]]
[[Category:Long_term_funding]]
[[Category:The_business_context]]
[[Category:Manage_risks]]
[[Category:Identify_and_assess_risks]]
[[Category:Risk_frameworks]]
[[Category:Treasury_operations_infrastructure]]

Revision as of 13:57, 17 May 2017

1.

A formal legal agreement to take, or not to take, certain actions.


2.

In loan documentation, a promise given by the borrower to take, or not to take, specified actions relevant to the borrower's creditworthiness.[1] For example, a financial covenant to maintain a minimum ratio of net worth to debt.


3.

In relation to pension funds, the credit strength of the sponsoring employer and its commitment to the pension fund.


See also


References

  1. ↑ http://www.treasurers.org/node/8842

Treasury Essentials: Covenants, The Treasurer, March 2013

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