The manufacturer's suggested retail price (MSRP) is the price at which a product maker recommends that a retailer sell the item to consumers. This pricing strategy aids in industry-standard pricing and maintains brand value.
Manufacturers and Contractors Liability Insurance provides coverage for liability exposures that result from manufacturing and contracting operations. This type of insurance typically excludes activities of independent contractors, and damages to property caused by explosion, collapse, and underground property damage.
A manufacturing account, or manufacturing statement, is an accounting statement forming part of the internal final accounts of a manufacturing organization; for a particular period, it is constructed to show direct cost of sales, manufacturing overhead, total production cost, and cost of goods manufactured. In some cases, a manufacturing profit is also computed.
A key economic indicator representing the combined values of trade sales and shipments by manufacturers, as well as values of inventories and business sales. The inventory rates of change indicate the growth or contraction within the economy.
The cost to a manufacturing company of making a product, consisting of direct materials, direct labor, and factory overhead; also called manufacturing expense.
The manufacturing cost of finished goods refers to the total expense incurred to produce a finished product. This includes the direct materials, direct labor, and manufacturing overhead costs associated with the production process.
Understand in detail the various expenses incurred during the manufacturing process, including direct materials, direct labor, direct expenses, and manufacturing overhead.
Manufacturing expenses, often referred to as manufacturing costs, encompass all the financial expenditures required to produce goods. These costs are crucial for businesses as they significantly impact pricing, budgeting, and overall profitability.
Manufacturing inventory refers to the parts or materials on hand, needed for the manufacturing process. Adjusting manufacturing inventory to current production needs is a critical management responsibility.
The elapsed time between placing a production order and the receipt of the completed production.
Manufacturing Overhead, also known as Production Overhead, includes all the indirect costs incurred in the production process that cannot be directly traced to the product or cost unit. These costs cover a wide range of expenses such as depreciation of machinery, factory rent, maintenance expenses, and utilities.
The difference between the value of goods transferred from a manufacturing account to a trading account at a price other than the cost of goods manufactured and the actual cost of goods manufactured.
A Manufacturing Requisition acts as an internal document within a manufacturing unit, outlining the specific raw materials, parts, and other resources required to produce a particular product, and facilitates inventory management.
A comprehensive report detailing the cost of production in a manufacturing firm, prepared to assess the financial performance of the company's production activities.
The time taken to produce a specified quantity of products, from the start of production to the end of production, encompassing all phases including setup, actual production, and any necessary adjustments.
A manufacturing operation at the U.S.-Mexican border, usually comprising two plants on either side of the border, designed to capitalize on free trade benefits, low Mexican wages, and U.S. distribution facilities.
A Mareva Injunction, also known as a freezing injunction, is a legal remedy granted by a court to freeze the assets of a defendant to prevent them from being dissipated or moved out of reach, pending the outcome of a legal action.
In accounting and finance, 'Margin' can refer to several different concepts ranging from profit margin in sales to the difference in buy/sell prices by market makers.
A margin account is a type of brokerage account that allows customers to borrow money from their broker to buy securities, following regulations from the Federal Reserve Board, the National Association of Securities Dealers (NASD), the New York Stock Exchange, and individual brokerage house rules.
A Margin Call is a demand, usually resulting from the price decline of a security bought on margin, that a customer deposit enough money or securities to bring a margin account up to the initial margin or minimum maintenance requirements. If a customer fails to respond, securities in the account may be liquidated.
The margin of profit is a financial metric that reveals the relationship between gross profits and net sales. It is used to evaluate a company's profitability by expressing gross profit as a percentage of net sales.
The difference between the level of activity at which an organization breaks even and a given level of activity greater than the breakeven point, especially the forecast level in a breakeven analysis. The margin of safety may be expressed in the same terms as the breakeven point, i.e., sales value, number of units, or percentage of capacity.
The margin of safety ratio is a financial metric used to measure the amount by which sales can drop before a business reaches its break-even point. It is expressed as a percentage of current sales.
Marginal cost represents the cost of producing one additional unit of a product. It includes both direct costs and variable overhead costs associated with the production process.
A graphical depiction representing the marginal cost experienced by a producer at various levels of production.
Marginal Cost of Capital represents the cost of financing for the next dollar of capital raised. Different sources of capital, such as subordinated debt, can have varying costs. This metric is crucial for determining the hurdle rate in discounted cash flow and present value analysis.
Marginal Cost Pricing sets product prices based solely on the product's marginal costs. It is typically employed in exceptional situations where competition is intense.
A costing and decision-making technique that charges only the marginal costs to the cost units and treats the fixed costs as a lump sum, deducting from the total contribution to obtain the profit or loss for the period.
The Marginal Efficiency of Capital (MEC) is the annual percentage yield earned by the last additional unit of capital. It is crucial for determining the profitability of investment projects. Also known as marginal productivity of capital, natural interest rate, net capital productivity, and rate of return over cost, MEC indicates which projects exceed the market rate of interest and are thus profitable to undertake.
A marginal producer in an industry is an individual producer who remains barely profitable at current levels of price and production.
Marginal Product refers to the additional amount of output that is produced by employing one more unit of a particular input, holding all other inputs constant. It is a measure of production efficiency and is crucial in understanding the behavior of production processes.
The Marginal Product Theory of Distribution explains how income is distributed among the factors of production based on the marginal product of each factor. This theory asserts that each factor, such as labor and capital, is compensated according to its contribution to the market value of the product.
The proportion of additional income that a consumer or economy will consume rather than save, expressed as a decimal or fraction.
The Marginal Propensity to Invest (MPI) is a measure in economics that defines the proportion of additional national income that will be invested rather than consumed or saved.
The Marginal Propensity to Save (MPS) represents the proportion of additional income that is saved rather than consumed by households. It plays a critical role in determining the economy's potential for investment and growth.
Marginal property refers to real estate that is barely profitable to use. The concept often applies to land that can produce income, but only by the smallest of margins when comparing production costs to revenue.
The marginal rate of tax represents the amount of extra tax that a taxpayer incurs if they earn one additional unit of currency over their current income. This rate typically rises as incomes increase under a progressive tax regime.
Marginal Relief is a UK tax relief available to companies whose profits chargeable to corporation tax fall between certain defined limits for a financial year. This relief aims to smooth the transition between various corporation tax rates.
Marginal revenue is the additional income that accrues to an organization as the result of selling an extra unit of sales. It is a critical metric for businesses in understanding the profitability impact of their incremental sales decisions.
The Marginal Revenue Product (MRP) is an important concept in economics that represents the additional revenue a firm could receive by employing one more unit of input.
The marginal tax rate is the tax rate applied to an additional dollar of income, influenced by the progressive nature of income tax systems.
The additional usefulness or satisfaction a consumer receives from the consumption of one more unit of a good.
A method for setting transfer prices equal to marginal costs to help managers identify the optimal output levels for maximizing profits when there is no market for goods and services traded between divisions of an organization.
Marine Insurance provides coverage for goods in transit and the vehicles of transportation on waterways, land, and air. It protects against losses and damage to ships, cargo, terminals, and any transport by which property is transferred, acquired, or held between the points of origin and the final destination.
Marine Insurance, Inland is a type of insurance that provides coverage against losses occurring on inland waterways and for property shipped over land by any means. It typically protects the owner and the entity to whom the property is entrusted during transit. Policy coverage can vary significantly based on terms and conditions.
The Marital Deduction is a provision in U.S. federal estate and gift tax laws allowing a surviving spouse to inherit the decedent's estate or receive gifts from the spouse tax-free, thereby deferring estate taxes until the property is transferred to the next generation.
Marital status refers to the legal standing of an individual's relationship in the eyes of the law, which directly impacts the kind of tax return they file. This can be single, joint, married filing separately, or head of household. Different tax rates and benefits apply to these various statuses.
Mark to Market (MTM) is a financial accounting method where the value of an asset is adjusted to reflect its current market value rather than its book value. It's used in margin accounts to ensure compliance and by mutual funds to report daily net asset values.
A markdown refers to a reduction in the original retail selling price of merchandise. It applies only when the price is dropped below the original selling price established by adding a markup percentage to the cost of the merchandise.
The base interest rate defined in the loan agreement, to which the spread is added in order to establish the interest rate payable on a variable-rate loan.
In its most fundamental sense, a market is any public place where products or services are bought and sold, either directly or through intermediaries. It also refers to the aggregate of people with the present or potential ability and desire to purchase goods or services. Securities markets, such as the New York Stock Exchange, are an important facet of markets in the financial domain.
Market abuse encompasses various illicit activities such as insider trading, unlawful disclosures of insider information, and market manipulation. These practices are addressed under the EU's Market Abuse Directive of 2012.
Market Analysis is the comprehensive study designed to define a company's current or potential markets, forecast their directions, and decide how to expand the company's share and exploit any new trends.
The market approach, also known as the sales comparison approach, is a method used to value an asset based on the selling price of similar assets in the marketplace. This valuation technique is widely used in real estate and business valuation.
A market area is the geographic region from which one can expect the primary demand for a specific product or service.
A combination of goods, in statistically derived proportions, used to track price changes. It is used in such indicators as the Consumer Price Index (CPI), and the Producer Price Index (PPI).
The Market Comparison Approach, also known as the Sales Comparison Approach, is a method used in real estate appraisal to determine the value of a property by comparing it to similar properties that have recently been sold in the same area.
Market demand represents the total demand of all consumers in a market. By summing the quantities demanded by each individual consumer at various prices, it determines the overall demand experienced by the entire market.
The Market Development Index (MDI) measures the relationship between potential and actual customers of a brand within a specific market (geographical area) compared to this relationship on a national scale, aiding in understanding market penetration and identifying growth opportunities.
A market economy is an economic system in which the production and prices of goods and services are determined by competition among privately owned businesses.
Market equilibrium is a situation in a market where the prevailing price causes producers to produce exactly the quantity demanded by consumers at that same price. A market in equilibrium will not experience changes in price or quantity produced.
Market failure occurs when the equalization of supply and demand fails to produce an efficient allocation of resources from a social viewpoint. Causes for market failure include external economies, incomplete or poorly enforced property rights, and monopolistic characteristics of suppliers.
Market goods are goods that are typically provided and priced by market participants in a competitive marketplace, as contrasted with collective goods, which are typically provided by the government. They are characterized by rivalry in consumption and excludability.
A Market Index is a statistical measure that tracks the performance of a group of assets in order to provide a benchmark for the wider market or specific sectors of it.
A market letter is a newsletter provided by brokerage firms to their customers or sold by independent market analysts. The analysts are typically registered as investment advisers with the Securities and Exchange Commission (SEC). The market letter offers financial advice, market analysis, stock recommendations, and other investment-related information.
A market maker is a dealer in securities introducing liquidity to the market by buying and selling as a principal and setting prices for transactions.
Dealers in the securities exchange who buy and sell securities for their own account to maintain liquidity and an orderly market.
A market order is an instruction given to a broker to buy or sell a security at the best available price at the moment the order is placed. This is executed immediately under current market conditions.
A Market Participant Interview is a strategic method to gather in-depth opinions and insights from individuals who are actively involved in buying, selling, or renting a product. These interviews typically focus on a smaller, more knowledgeable group than a random sample or a general survey.
Market penetration is a marketing strategy aimed at increasing a product's sales within an existing market through more aggressive marketing tactics. It also refers to the degree of a product's purchase within a specific market.
Market price refers to the prevailing price of a product, service, security, or raw material in an open and competitive market. This term is crucial in formal markets such as stock exchanges or commodity markets.
The Market Price to Book Ratio is a financial metric used to compare the market value of a company's stock to its book value, offering insights into how the market perceives the value of the company’s net assets.
A comprehensive analysis of market profile, encompassing the demographic characteristics of potential buyers for a product or product line.
Market Rent is the amount of rent a comparable unit would command if offered in a competitive market. It reflects the going rate in the open market based on various influencing factors including location, property condition, and current demand and supply.
A comprehensive summary and analysis of the daily activities of a stock exchange or other financial markets, including major stock indices, economic indicators, and notable events influencing the markets.
Market research involves exploring the size, characteristics, and potential of a market to identify consumer needs and preferences, usually before developing a new product or service.
Market risk is the potential financial loss arising from fluctuations in market prices. This can include risks from buying in a falling market or selling in a rising market. Hedging with futures contracts or options can mitigate, but not eliminate, these risks.
Market screening is a method of scanning for desirable markets based on environmental factors that help preclude undesirable markets. It is commonly used in international business strategy to evaluate potential markets effectively.
A market segment is one of two or more subgroups within a target market. Different marketing mix strategies can be developed to reach each of the target market segments.
Market segmentation is the process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers (known as segments) based on some type of shared characteristics. The goal is to identify high-yield segments — that is, those segments that are likely to be the most profitable or that have growth potential — so that these can be targeted with tailored marketing strategies.
Market share represents the percentage of an industry's sales that is attributed to a particular company or product, indicating its competitiveness within the market.
Market socialism refers to an economic system that combines elements of socialism with market mechanisms, where the government owns the means of production and directs investment, but distributes goods and services according to consumer demand and supply.
An economic system that relies upon markets to allocate resources and determine prices of goods and services.
A market test is the exposure of goods or services to a small sample of the entire market to test various marketing strategies. This helps in evaluating the potential demand for a product before a full-scale launch.
Market Timing refers to the strategic decision-making process of buying or selling securities based on economic conditions, interest rates, stock price directions, and trading volumes.
Market value is a critical financial metric, reflecting the current price at which an asset or service can be bought or sold in a marketplace. It is widely used in trading and investing to determine the 'fair price' of a property, stock, or currency.
Market Value is a financial metric that measures the value of an asset or company determined by the current market price of its shares or assets. Distinguished from book value, it reflects real-time valuation and investor sentiment.
A provision in property insurance that determines the reimbursement amount for damaged or destroyed property based on the price a willing buyer would pay to a willing seller, rather than the property's actual cash value.
Market value is the price a willing buyer would pay for property purchased from a willing seller, while actual cash value is the replacement cost of damaged or destroyed property minus depreciation and obsolescence.
Market-based transfer prices align internal transactional prices with prevailing market prices to mitigate bias and ensure fairness within an organization’s various divisions.
The market-risk premium is the additional return over a risk-free rate demanded by investors to compensate for the risk of holding a market portfolio instead of risk-free assets.
The Market-to-Book Ratio (M/B ratio) is a financial valuation metric used to compare a company's current market price to its book value, providing insights into how the market values the firm's assets.
Marketability refers to the speed and ease with which a particular product or investment may be bought and sold. While it is often used interchangeably with liquidity, liquidity specifically implies the preservation of value when a security is bought or sold.
A marketability study is an in-depth analysis aimed at determining the likely sales success and marketability of a specific product for a particular client. It involves gathering data on market prices, quantities, and types of products that are currently selling.
Marketable securities are assets on a corporation's balance sheet that can be readily converted into cash, reflecting their liquidity. They include government securities, banker's acceptances, and commercial paper.
Marketable title refers to a good or clear title reasonably free from the risk of litigation over possible defects, that a well-informed purchaser, in the use of ordinary business prudence, would be willing to accept.
A marketable title, also known as a merchantable title, is a property title that is free from significant defects, claims, or liens and is acceptable for purchase.
Marketing encompasses the strategic activities involved in promoting the sale of goods or services. This discipline is centered around the Four Ps: product, price, place, and promotion.
The marketing concept is a strategic approach to marketing that focuses on delivering value and benefits to customers rather than just promoting products or services.
Marketing Cost Variance refers to the difference between the budgeted marketing costs and the actual marketing costs incurred during a specific period. This metric helps evaluate the efficiency of marketing expenditure and can be either favorable or unfavorable.
