World of Business Test #1
Terms
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- Accessibility
- the ability of the customer to gain access to a product.
- Accounts Payable
- the amount owed to suppliers for materials.
- Accounts Recievable
- the amount of money owed to the company by its debtors
- Age
- the preferred Percieved Age customers would like a product to possess
- Automation
- automation on each production line during coming years
- Balance Sheet
- financial statement that summarizes financial postion on a given date. assets=liabilities + owner's equity
- Bonds
- value of all outstanding bond which will become due at some future date
- Capacity
- straight time capacity the company will enjoy on each of its production lines during coming years
- Cash Flow Statement
- financial statement summarizes the company's cash reciepts, cash payments, and net change in cash for a specific period.
- Contribution Margin
- sales revenue less variable costs (material and labor)
- Cumulative Profits
- total of all profits (losses) generated since the company's inception.
- Current Assets
- cash plus accounts recievables from balance sheet.
- Current Debt
- value of debt owed and payable on Jan 1st of the year of decisions being made.
- Current Liabilities
- current debt plus accounts payable
- Current Ratio
- Current assets divided by current liabilities
- Direct Labor
- cost of all labor assosciated with manufacturing the product; can be lowered or raised by shifting automation.
- Direct Material
- cost of all raw materials necessary to manufacture a product.
- Dividend
- income the firm provides to its owners, shareholders, based on profits.
- Earnings Per Share
- determined by dividing net profit into number of shares outstanding
- Emergency Loan
- amount of cash injected during year when company is completely devoid of cash.
- Finance
- involved with acquiring needed capital, establishing dividend policy. Setting credit policies and driving financial structure of firm in it's relationship between debt and equity.
- Gross Margin
- revenue left after deducting direct labor, direct materials and depreciation expressed as a percentage of sales
- Income Statement
- financial statement also known as Profit and Loss Statement; summarizes results of company's operating activities for a specific time period and shows company's profit for that period.
- Inventory Carrying Costs
- value of units left in inventory (total unit cost) multiplied by a penalty of 12%
- Long Term Debt
- value of all outstanding bonds which will become due at some future date. Long term interest is paid on outstanding bonds.
- Market Segment
- customer groups with similiar buying habits and characteristics; each has a different size and performance.
- Market Share
- overal percentage share of the dollar volume gained each year
- Material Cost
- per unit cost of direct materials in the year just ended
- MTBF
- Mean Time Before Failure-measures reliability of product expressed in a standard unit of measure such as thousands of hours.
- Net Income
- value of profits as calculated on income statement
- Net Margin
- value of sales less variable and period costs
- Net Profit
- earnings lefts after all expenses are paid.
- Perceptual Map
- marketing too used to compare products against customer perceptions.
- Plant Utilization
- volume actually produced during previous round compared to actual capacity for that round.
- Promotion Budget
- value of monies expended on media advertising
- Period Costs
- costs that generally tend not to move in proportion to sales volume
- Profits
- shows dollar profit earned each year
- Retained Earnings
- total of all company profits and loses over the life of the company, less any Dividends paid out.
- Research and Development Costs
- annual costs assosciated with redesigning an existing, or designing an entirely new product
- ROS
- Return On Sales-net profits generated each year divided by total sales for same period
- ROE
- Return On Equity-net profit generated each year divided by value of owners' equity for that year
- ROA
- Return On Assets-net profit generated each year divided by value of total assets for same period
- Sales
- value of products sold over the previous 12 months, broken out by product line
- Sales Budget
- budget pays sales personnel and expands distributing network
- SG&A
- Sales, general and administrative costs. includes all R&D costs.
- Short Term Interest
- interest paid on current debt, including interest on emergency loans
- Stock Out
- inventory completely deflated
- Total Fixed Assets
- value of plan and equipment less total accumulated depreciation
- Total Liability
- sum total of accounts payable, current debt, and long term debt
- Variable Costs
- costs that vary in direct porportion to number of units sold.