Financial Distress Costs

Business, Legal & Accounting Glossary

Definition: Financial Distress Costs


Financial Distress Costs


Full Definition of Financial Distress Costs


Costs associated with companies who cannot meet its financial obligations. Financially distressed companies incur more costs as their cost of borrowing is higher, their production is lesser and they have higher opportunity costs in terms of lost income. Also included are reorganization or liquidation costs.


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Financial Distress Costs. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
December 19, 2024 https://payrollheaven.com/define/financial-distress-costs/.
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Financial Distress Costs. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/financial-distress-costs/ (accessed: December 19, 2024).
American Psychological Association (APA):
Financial Distress Costs. PayrollHeaven.com. Retrieved December 19, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/financial-distress-costs/

Definition Sources


Definitions for Financial Distress Costs are sourced/syndicated and enhanced from:

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

This glossary post was last updated: 20th November, 2021 | 0 Views.