A Primary Metropolitan Statistical Area (PMSA) is a geographic entity designated by the federal Office of Management and Budget for use by federal statistical agencies. It is a subunit of a larger metropolitan area that has a census population of one million or more.
The primary package is the immediate container of a product which is in direct contact with the goods and is used for the final consumer sale. For example, a bag of potato chips is the primary package, while the carton in which the bags of potato chips are shipped is the outer package.
A primary residence refers to the main home a person inhabits most of the year, also known as a principal residence. It contrasts with second homes and vacation homes.
Primary storage devices, such as Random Access Memory (RAM), are where current data is stored temporarily as the computer operates. These devices use volatile memory chips to manage active processes and data.
A prime contractor, often referred to as the general contractor, is the main contractor responsible for overseeing the overall construction project, managing subcontractors, and ensuring completion in compliance with contract specifics and legal requirements.
Prime cost is a crucial accounting term reflecting the direct costs of production, typically including direct materials and direct labor expenses.
Prime documents are the foundational elements used to initiate and record accounting entries in both accounting and management accounting systems. They include documents such as sales invoices, materials requisitions, materials returns notes, and direct charge vouchers.
Prime Paper refers to the highest quality commercial paper, rated by major credit rating agencies like Moody's Investor's Service. It is considered investment-grade and is categorized based on its quality level.
The prime rate refers to the interest rate that commercial banks charge their most creditworthy customers, typically large corporations. It serves as a key benchmark in determining lending rates for consumers and businesses.
A prime tenant in a shopping center or office building is the lessee who occupies the most space. Prime tenants are typically credit-worthy and attract significant traffic to the venue.
The term 'principal' in accounting can refer to either the initial sum of money on which interest is paid or to a person who has authorized another to act on their behalf, especially in the context of an agency relationship.
The principal amount is the face value of a financial obligation such as a bond or a loan that is required to be repaid at its maturity date, distinct from the interest accrued.
A periodic payment, usually paid monthly, that includes the interest charges for the period plus an amount applied to amortization of the principal balance; commonly used with amortizing loans.
The principal budget factor, also known as the limiting factor or constraint, refers to the element or resource that imposes a limitation on the organization’s budgeting process and overall production capabilities.
A principal place of business refers to the primary location where an individual conducts the administrative or management activities of a trade or business. It is a key criterion for determining if a home office is tax-deductible.
A principal private residence (PPR) refers to an individual's main private dwelling house where they typically reside the majority of the time. Gains arising from the sale of a PPR are usually exempt from capital gains tax (CGT).
Formerly referred to as the primary residence, a principal residence is the main home where an individual lives and spends the majority of their time. Certain tax benefits and legal protections can be tied to the designation of a property as a principal residence.
A principal stockholder is an individual or entity that owns a significant percentage of a company's shares, typically 10% or more, according to the Securities and Exchange Commission (SEC) rules.
The principal sum refers to the core amount of a debt or financial obligation. In finance, it is the initial amount of money borrowed without interest. In insurance, it designates the amount specified to be paid to the beneficiary under the policy, such as the death benefit.
A periodic, typically monthly, payment required by an amortizing loan that includes escrow deposits. Each periodic payment includes a principal and interest payment plus a contribution to the escrow account set up by the lender to pay insurance premiums and property taxes on the mortgaged property.
Principle refers to a fundamental rule or general standard adhered to in most areas of human conduct. These can be ethical declarations, such as 'Do unto others as you would have them do unto you.'
Strictly speaking, to engrave and produce physical currency. Connotatively, it means adding to the supply of money and credit for the purpose of monetizing debt or stimulating spending, implicitly leading to inflation or, at worst, hyperinflation.
A printer is a device that produces a hard copy (printed paper) of documents stored in electronic form, usually on physical print media such as paper. Printers are a common peripheral in computing, available in various types with differing technologies and capabilities.
A printout refers to the process of producing hard copy output from a computer, involving the selection and printing of information from computer files or displaying the current content on a computer screen.
A prior period adjustment is an accounting term used to describe a correction to an error in previously issued financial statements. These adjustments are necessary to accurately reflect the financial status of a company or organization.
Prior service cost refers to the obligations a company incurs for employee benefits under a pension plan related to service provided by the employee before a specific date.
Adjustments applicable to prior accounting periods due to changes in accounting policies or correction of material errors. These are not normal recurring adjustments or corrections of accounting estimates.
A type of preferred stock that has a higher claim on assets and dividends compared to other issues of preferred stock or common stock, often referred to as preference shares.
A multifaceted concept predominately characterized by the sequence of preference in various legal and financial settings including bankruptcy proceedings, and the right to be paid before other creditors.
Priority Mail is a class of mail offered by the U.S. Postal Service for letters and parcels, ensuring quick and reliable delivery for packages weighing up to 70 pounds.
A federal tax lien for nonpayment of taxes has priority over most other liens but is not valid against specific lien holders until properly recorded. Certain superpriorities may have precedence over a tax lien.
Privacy laws refer to the regulations enacted to protect the personal information and privacy of individuals. In the United States, these laws have been introduced following the recommendations of the Privacy Protection Study Commission established by the Privacy Act of 1974.
Private accountants are in-house accountants employed by an organization to maintain financial control and supervise the organization's accounting system.
Private brands are product brands owned by a retailer or wholesaler rather than the manufacturer. They are typically sold at a lower price compared to national brands.
A private carrier is a transportation system owned and operated by a company for its own shipping requirements, specifically transporting goods or passengers exclusively for that company's business purposes.
Private equity firms are investment firms that acquire controlling stakes in companies, typically using leverage, to restructure and eventually sell them for profit.
A Private Equity Fund is a collective investment scheme used primarily for acquiring or providing business capital, usually structured as a limited partnership, that receives capital from various accredited and institutional investors.
Private Finance Initiative (PFI) is a procurement method used by the public sector to fund major infrastructure projects with private capital. It involves long-term contracts between private partners and government entities.
A Private Finance Initiative (PFI) is a way of funding public infrastructure projects with private capital, typically structured under long-term contracts between the public and private sectors.
A private foundation is a non-profit organization, typically family- or corporate-based, that is engaged in charitable activities. It operates under stricter contribution limitations and is subject to several penalty and excise taxes.
Private goods are objects or services that possess typical characteristics including excludability and rivalrous consumption. These goods are consumed by individuals, and the consumption by one person prevents others from consuming the same unit or gaining similar benefits.
A private issue, also known as a private placement, refers to the sale of securities to a relatively small number of chosen investors as a way of raising capital.
Private Law governs the relationships between private individuals, companies, or organizations. Unlike Public Law, it does not involve government intervention and encompasses various legal disciplines including contract, tort, property, and family law.
A private ledger is a subset of an accounting ledger that holds confidential and sensitive financial information, isolated from the general ledger for security and privacy reasons.
A private limited company is a type of business entity which has limited liability and restricted ownership, preventing it from offering shares to the public.
Private Mortgage Insurance (PMI) is a type of insurance required primarily for homebuyers who obtain conventional loans with a down payment of less than 20% of the home's purchase price. It protects the lender in case the borrower defaults.
Insurance on conventional loans, provided by private insurance companies to protect lenders against loss if a borrower defaults on their loan.
A private offering, also known as private placement, refers to an investment or business offered for sale to a small group of investors, generally under exemptions to registration allowed by the Securities and Exchange Commission (SEC) and state securities registration laws.
A private ruling is a written response from the Internal Revenue Service (IRS) regarding the tax implications of a specific proposed transaction. Initially kept private, these rulings are now publicly accessible.
A comprehensive guide detailing the transition of a publicly owned company or asset to private sector ownership, including economic and political motivations, examples, FAQs, related terms, and learning resources.
A right or prerogative to perform specific actions that are exclusive to an individual or a group. It often stems from wealth, status, or specific societal structures.
Privity refers to the direct relationship between parties that is necessary for legal liability or mutual interest to exist. It's a fundamental concept in different domains of law, especially contract and property law.
A prize broker arranges the exchange of an advertiser's merchandise for free broadcast time or publicity plugs on radio or television shows, often called a barter broker.
Pro Forma refers to the presentation of financial data that adheres to a specific format and often includes hypothetical or projected numbers to provide a basis for analysis and planning.
Pro rata refers to the proportionate allocation of a particular expense or resource among individuals or entities based on their respective shares or contributions.
Pro rata cancellation refers to the revocation of an insurance policy by an insurance company, which returns to the policyholder the unearned premium without reducing for expenses already paid.
A provision in many property insurance policies that automatically distributes coverage over insured property at various locations in proportion to their value.
Pro-forma financial statements are financial reports prepared in advance, containing estimates and projections to inform and guide decision-making.
Proactively engaging in future-oriented strategies to anticipate and address potential issues before they arise.
Probability is the likelihood that a particular outcome will occur, quantified on a scale from 0 (indicating certainty that it will not occur) to 1 (indicating certainty that it will occur). It is a key concept in decision-making models, often subjective in nature.
In statistics, a probability density function (PDF) defines the likelihood of a discrete or continuous random variable taking specific values or a range of values, respectively.
Probate is the legal process by which a will is proved valid or invalid, encompassing all procedures necessary to authenticate the document and administer the estate of the deceased.
Probate assets are those assets within an estate that are subject to probate and court disposition, and thus become part of public records.
A probate estate includes all property that passes under a will or by state intestate succession laws from a decedent to their heirs or other beneficiaries. It is distinct from the gross estate.
A valuation of all the assets included in the estate of a deceased person at the date of his or her death, taking into account any restrictions on the use of the assets. This value is primarily agreed upon with HM Revenue and Customs for the purpose of calculating inheritance tax.
A probationary employee refers to an individual who is in a preliminary period of employment, during which their performance and suitability for a permanent role is evaluated. This term can also apply to current employees placed on probationary status as a form of disciplinary action.
In the context of the Boston Consulting Group (BCG) Matrix, a 'Problem Child' represents a business unit, product line, or project that holds a small market share in a high-growth market. These units or products have the potential to grow but require significant investment to gain market share.
The Problem Resolution Program (PRP) is an avenue provided by the IRS for aggrieved taxpayers who have difficulty getting their voices heard, providing them with assistance and advocacy.
Proceeds refer to the amount of money or capital generated from a transaction or a series of transactions, typically calculated after applicable costs, fees, and commissions have been deducted.
Process control systems are computerized sensing systems that monitor specialized devices and processes within a controlled environment. These systems have the capability of automatically making adjustments to maintain preset environmental specifications.
Process costing is a method of costing used primarily in manufacturing where goods or services result from a sequence of continuous or repetitive operations.
A costing system applied to production carried out by a series of chemical or operational stages or processes. Characterized by the accumulation of costs for the whole production process and computation of average unit costs at each stage.
Process costing is a method of cost accounting used where production is continuous, and the cost per unit is derived by spreading production costs equally across all units produced in a specific time period.
A method of dividing the productive procedures in a manufacturing organization into organizational segments to optimize efficiency and specialization.
Process innovation refers to the implementation of a new or significantly improved production or delivery method. This can include changes in techniques, equipment, or software and aims to increase efficiency and effectiveness in an organization.
Procurement is the acquisition of goods, services, or works from an external source, typically through a bidding process. It involves the process of finding, agreeing on terms, and acquiring goods, services, or works from an external source, often via a tendering or competitive bidding process.
Procuring Cause is a legal term predominantly used in real estate to determine whether a broker is entitled to a commission. It refers to the action that resulted directly in achieving a specific goal, such as the sale or lease of a property.
An early online service provider, now owned by AT&T (formerly SBC Corporation), that left an indelible mark on the digital age by pioneering online community and internet access.
The term 'produce' refers to both the act of creating or manufacturing goods and the classification of agricultural products like fruits and vegetables.
An organization of producers who cooperate in the areas of buying supplies and equipment and of marketing. These cooperatives aim to achieve greater efficiency and market influence than they could individually.
Producer goods, also known as intermediate or capital goods, are newer machinery and equipment bought for business use. These are durable goods used in business production to assist in the production of consumer goods and services.
The Producer Price Index (PPI) measures wholesale prices across various stages of production and distribution before goods and services reach the consumer market. It is released monthly by the U.S. Bureau of Labor Statistics.
An item, sub-assembly, part, or cost unit manufactured or sold by an organization.
Product advertising is targeted specifically at promoting individual products or services, highlighting their features, benefits, and performance to attract customers and drive sales.
The costs of production when charged to the cost units and expressed as costs of individual products. Product costs may include both direct costs and indirect costs (overhead); many different costing methods, such as absorption costing, activity-based costing, and process costing, are used in computing product costs.
The structured sequence of stages involved in bringing a new product or service concept to market, encompassing market analysis, targeting, development, distribution, and feedback analysis.
Product differentiation is a strategic process employed by businesses to set their products apart from competitors through unique features, branding, and quality.
A product image is a visual representation used in marketing and advertising to promote and describe a product.
Product liability refers to the legal responsibility of manufacturers, wholesalers, or retailers to ensure that their products are safe for consumers. It arises under the law of torts and holds parties strictly liable for defects that cause injury.
The Product Life Cycle (PLC) is a theory that postulates the development of a product through various stages, guiding marketing managers in devising effective strategies and decisions. It encompasses introduction, growth, maturity, and decline stages.
A product line refers to a group of products manufactured by a firm that are closely related in use and in production and marketing requirements. The depth of the product line indicates the number of different products offered within that line.
A Product Manager is responsible for the planning, development, and overall strategic execution of a product throughout its lifecycle, ensuring that it meets market needs and aligns with the company's business objectives.
The assortment of merchandise made or held for sale by a business; a crucial element of marketing strategy.
Product Research and Development (PR&D) involves activities performed by a team of professionals working to transform a product idea into a technically sound and promotable product. This process, also referred to as Research & Development (R&D), is essential for innovation and maintaining competitive advantage in the market.
Product-sustaining-level activities are activities that are necessary to support a specific product regardless of the volume of production. These activities ensure the possible production and effective marketing of the product.
Production refers to the processes and methods employed to transform inputs (like raw materials, labor, and machinery) into finished products or services. The volume of production can be quantified in units, direct labor hours, machine hours, or direct labor costs.
The planning, coordination, and controlling of an organization's resources to efficiently facilitate the production process, encompassing key issues such as location, labor, transportation costs, and production forecasting.
A critical component of an organization's operating budget, the production budget outlines the volumes and costs associated with producing goods within a set period, ensuring effective budgetary control.
A production builder refers to a construction professional or company that builds homes based on a set of pre-planned designs and specifications, often using an efficient, assembly-line process. This model contrasts with custom builders who design and build homes according to individual customer specifications.
Production control involves planning, routing, scheduling, dispatching, and inspecting the operations or items being manufactured to ensure efficiency and quality in the production process.
