capital charge

Definition

An amount of money equal to how much a business has tied up in assets multiplied by the weighted average cost of those assets. The computation of the economic profit of a business by its finance department involves subtracting its capital charge from its net operating profit.

Related Videos




http://www.businessdictionary.com/definition/capital-charge.html

Today's Top Bulls

72% Bullish
(36 Votes)
70% Bullish
(103 Votes)
69% Bullish
(26 Votes)
Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z