carrying charge


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Related to carrying charge: Carrying Charge Market

carrying charge

1. A cost incurred for the physical storage or ownership of an asset that is unproductive or not lucrative. The strike by pilots and flight attendants devastated the airline's profits, as they had to refund passengers' ticket prices as well as pay a higher carrying charge for their grounded airplanes. The carrying charge for the new apartment complex, which failed to attract potential homeowners, eventually bankrupted the development company.
2. An additional charge, usually interest, applied to an account that is paid in installments. The phone company advertised having the lowest rate, but after the carrying charge was applied, my monthly bill was actually higher than ever before!
See also: carry, charge

carrying charge

1. Interest charged on the balance owed when paying on an installment plan, as in What is the carrying charge for this credit card? The term denotes the amount charged for carrying the remaining debt. [Late 1800s]
2. The cost incurred when an asset is unproductive, as when aircraft are grounded during a strike, real estate cannot be developed owing to zoning laws, or similar circumstances. For example, The carrying charge for owning this building may send us into bankruptcy.
See also: carry, charge
References in periodicals archive ?
Summing up our discussion, supply chain management professionals must develop better estimates of the components of the total cost of holding inventory--the noncapital carrying costs and the capital carrying charge. Better estimates of these components (which are almost always higher than the current estimates used) provide more accurate insights into the total cost of holding inventory.
AB: Assembly Bill ACR: Assembly Concurrent Resolution CPUC: California Public Utilities Commission CT: Combustion turbine EPD: Equal percentage of difference EPMC: Equal percentage of marginal cost ERI: Energy reliability index LRMC: Long-run marginal costs NCO: New customer method PG&E: Pacific Gas and Electric Company PW: Present worth QF: Qualifying Facility RECC: Real economic carrying charge SAPC: System average percentage change SCE: Southern California Edison Company SDG&E: San Diego Gas & Electric Company SRMC: Short-run marginal costs T&D: Transmission and distribution VOS: Value of service
The total costs of inventory are the sum of the carrying charges and the ordering costs.
263(g)(2) defines "interest and carrying charges" to mean the excess of (1) the interest related to debt that is "incurred or continued to purchase or carry the personal property" and all other amounts paid or incurred to carry the personal property over (2) certain receipts with respect to the personal property.
Election to capitalize carrying charges. Taxpayers can elect to capitalize the carrying costs of unimproved and nonproductive real property, real property under development or construction and personal property before its installation or use (Regs.
Homeownership is considered by many to be the American dream and the co-op Rochdale Village remains one of a few Mitchell-Lama limited equity co-ops, providing exceptionally low purchase prices with low monthly carrying charges, for families with low- and middle-income earnings.
Straddles are also subject to the requirement that interest and carrying charges allocable to property that is part of the straddle be capitalized.
The weaker debt protection is due to higher carrying charges and the utility's decision not to lift rates to a degree that would cover annual debt payments until fiscal 2012, the agency noted.
In addition, the Massachusetts Department of Public Utilities fined Unitil subsidiary Fitchburg Gas and Electric Light some $4.6 million plus carrying charges, for engaging in "an unauthorized natural gas price hedging program" that kept its customers from taking advantage of the drop in natural gas prices.
Even as the World Bank applauds them for joining the ranks of the world's most "business-friendly" economies, their post-Soviet policy decisions may doom them to serve as an object lesson for the late economist Herbert Stein's maxim that "a trend that can't go on forever, won't." Their economic problem is how to balance their trade deficit without running even more deeply into debt and thereby building carrying charges into their balance of payments.
GEM has agreed to time frames, at the end of which the customer agrees to take product, carrying charges which are embedded in the price when a particular quantity of finished goods is agreed upon and no time sunset is indicated.
* collect repayment only if the business is profitable, excluding carrying charges;
you can save is in not producing more than your carrying charges can handle.
Consequently, the exposed b-c plane has O carrying charges of -4/3 or -2/3 (type A and type B oxygens).
(Having rental income taxed on a net basis after deductions for costs or operations, maintenance, and carrying charges usually results in a lower overall tax for the foreign owner.) On the other hand, U.S.