Define: Commodity

UK Accounting Glossary

Definition: Commodity


Quick Summary of Commodity


A reasonably interchangeable good or material bought and sold freely as an article of commerce. Commodities include agricultural products, fuels, and metals and are traded in bulk on a commodity exchange or spot market.



What is the dictionary definition of Commodity?

Dictionary Definition


  1. obsolete Convenience; usefulness, suitability.
  2. Anything movable (a good) that is bought and sold.
  3. Something useful or valuable.

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Full Definition of Commodity


Generally speaking, any tangible good can be categorized as a commodity. A commodity is typically a bulk good such as gold, silver, natural gas, and oil. A commodity may also be a bulk food product like grain, oats, corn, beef, pork bellies, and coffee. Traditionally, a commodity was merely a good, subject to sale or barter. Today, however, a commodity can also represent an investment vehicle. One example is commodity futures. A commodity is traded at the commodities exchange. Commodities exchanges not only facilitates the commodity trade but also establishes and enforces rules and regulations pertaining to the commodity trading process. Depending on its use and trading purpose, a commodity may come in two types – cash commodity and spot commodity. A cash commodity is an actual commodity that is under a futures contract. A spot commodity, on the other hand, is one that is traded on a spot market, pending delivery.

 


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Examples of Commodity in a sentence


And Slade said: It really makes me sad that football club chairmen and boards seem to have lost that most precious commodity – patience. Sam’s sacking at Newcastle had, I suppose, been on the cards for a while, but it is really ridiculous to fire a manager after such a short time.


Synonyms For Commodity


product, goods, merchandise, commodities, cargo


Cite Term


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Page URL
https://payrollheaven.com/define/commodity/
Modern Language Association (MLA):
Commodity. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 19, 2020 https://payrollheaven.com/define/commodity/.
Chicago Manual of Style (CMS):
Commodity. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/commodity/ (accessed: February 19, 2020).
American Psychological Association (APA):
Commodity. PayrollHeaven.com. Retrieved February 19, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/commodity/

Definition Sources


Definitions for Commodity are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 9th January 2020.