Sales mix represents the relative proportions of individual products that make up the total units sold within a company, offering insights into profitability and strategic planning.
An essential concept in managerial accounting, Sales Mix Profit Variance looks at the difference in actual profit compared to budgeted profit, considering the sales mix. It helps businesses understand the impact of variations in product sales mix on overall profitability.
A sales office is a manufacturer-owned office that usually has no inventory and is primarily intended to increase customer sales.
Sales price refers to the amount of money required to be paid or previously paid for property or a product. It is a crucial concept in business transactions, determining the financial outcome of sales activities.
Sales promotion encompasses activities, materials, devices, and techniques used to supplement advertising and marketing efforts, coordinating them with personal selling activities to boost product or service sales.
Sales returns refer to goods that customers have returned to a business, usually due to defects or dissatisfaction. This can impact a company's revenue and inventory management.
Sales Returns and Allowances is an account used to accumulate price reductions given to customers due to goods being returned or merchandise being defective and not suited to customers' needs.
The Sales Returns Book, also known as the Returns Inwards Book, is a specialized ledger maintained by businesses to record the return of goods sold to customers. It helps track and manage returned inventory, ensuring accurate financial accounting and inventory control.
Sales revenue is the income generated from the sale of goods or services by a company. It is a key determinant of a company's financial health, and it is crucial for assessing growth potential and earning assessments.
Sales tax is a consumption tax imposed by governments on the sale of goods and services, typically calculated as a percentage of the selling price. It is paid by the consumer at the point of purchase and collected by the retailer, who then remits it to the government.
Sales values represent the prices charged for items when they are sold. Additionally, in accounting, they serve as a method of apportioning joint costs between joint products in process costing models.
Sales volume refers to the number of units sold of each product. It is a key metric in evaluating the performance of a company’s products and its overall market position.
Sales volume variance is the difference between the budgeted sales quantity and the actual sales quantity, valued at the standard profit per unit or standard contribution margin per unit. It measures the impact of sales volume fluctuation on the financial performance of a business.
A lease in which the lessor meets the criteria for a capital lease and additionally satisfies criteria regarding collectibility and predictability of costs.
A salesperson is an individual whose primary responsibility is selling products, services, or investments. Salespersons in various industries, such as real estate, insurance, and securities, are often required to hold licenses.
The net residual value of an asset at the end of its useful life, when it is no longer suitable for its original use. Fixed assets, inventory, or waste arising from a production process can all have a salvage value.
Salvage value, also known as scrap value, is the estimated residual amount that an asset is expected to realize when it is sold at the end of its useful life.
A sample buyer is an individual who purchases or obtains a product sample, often at a special introductory rate or for free, to evaluate its quality or efficacy before committing to a full-sized purchase.
Sampling is a process in which a small group of items, known as a sample, is selected from a larger group (population) to represent the characteristics of the larger group. It is widely used in auditing, market research, and quality control.
Sampling is a fundamental aspect of fields like marketing research and sales promotion, facilitating the study and testing of small groups to draw conclusions or stimulate usage in larger populations cost-effectively.
A Samurai bond is a bond issued in Japan by a non-Japanese entity, denominated in Japanese yen. It enables foreign issuers to access the Japanese capital market.
A committee led by Sir Francis Sandilands, established in 1975 by the UK Government to explore the appropriate methodologies for accounting the effects of inflation in company financial statements.
A sandwich lease is a lease held by a lessee who becomes a lessor by subletting the leased property. Typically, the sandwich leaseholder is neither the owner nor the end-user of the property.
A detailed explanation and examples concerning the term 'Sans Recours' or 'Without Recourse', often used in the world of finance and accounting to limit the liability of the seller.
The Sarbanes-Oxley Act of 2002, often abbreviated as SOX, is a United States federal law that mandates various regulations to improve the accuracy and reliability of corporate disclosures and to protect investors against fraudulent financial practices.
Legislation introduced in response to major corporate financial scandals to enhance corporate transparency and accountability.
The Sarbanes-Oxley Act of 2002, often referred to as Sarbox or SOX, is a landmark piece of U.S. legislation designed to enhance corporate governance, financial transparency, and auditing standards in response to a series of high-profile corporate scandals, including the infamous Enron scandal.
An abbreviation with differing definitions in the United Kingdom and the United States, crucial for understanding standardized auditing practices.
Satellite communication refers to the use of orbital satellites to transmit voice, data, video, and graphics from one location to another.
Satisfaction of Debt refers to the release and discharge of an obligation where the performance is executed to fulfill a debt.
An instrument for recording and acknowledging final payment of a mortgage loan. The lender acknowledges that the debt has been satisfied.
The Satyam scandal was an accounting scandal involving the Indian computer services company Satyam, where profits and asset values were artificially inflated through fraudulent activities, primarily by creating thousands of false invoices over a period of five years.
The term 'save' refers to the act of setting aside resources for future use, particularly in the context of finances and data storage.
A program command used to save a file under a different name, in a different folder, or in a different format. The 'Save As' dialog is typically presented automatically for the first save of a newly created file, providing the opportunity to name the file.
A popular savings method employed by organizations to motivate employee savings and investments in company shares, often accompanied by tax privileges.
A Save-As-You-Earn (SAYE) scheme is an employee savings plan common in the United Kingdom that encourages savings and offers employees the opportunity to acquire company shares through payroll deductions.
Savings refer to the amount of disposable income that is not spent on consumption. The percentage of gross income that is saved defines the savings rate, a key indicator of economic health.
A bank or building-society account designed for the investment of personal savings. These accounts typically offer higher interest rates than deposit and current accounts. Some accounts provide instant access to funds, while others require notice to be given, typically 30, 60, or 90 days.
Savings and Loan Associations (S&Ls) are financial institutions that specialize in accepting savings deposits and making mortgage and other loans.
Savings and Loan Association (S&L) is a type of financial institution that specializes in accepting savings deposits and making mortgage loans.
A Savings and Loan Association (S&L), also known as a building and loan association, is a financial institution similar to a savings bank, with a historical focus on providing home loans. In recent years, S&Ls have expanded their services to include a wider variety of loans.
A US financial institution that specializes in accepting savings deposits and making mortgage loans. They offer loans with a fixed rate of interest and have greater investment flexibility compared to UK building societies.
A type of bank, prevalent on the East Coast and in the Midwest, primarily offering time-savings accounts. These banks are typically owned by their depositors, who receive dividends in the form of interest on their accounts. Their functions are similar to those of Savings and Loan Associations (S&Ls).
A U.S. government bond issued in denominations ranging from $50 to $10,000, traditionally issued at a discount and redeemed at face value upon maturity.
The savings element in cash value life insurance represents the portion of the policy that accumulates value over time, which policyholders can potentially access through withdrawals or surrenders. It functions both as a savings and investment vehicle.
The savings rate represents the portion of income that is saved rather than spent. It is an important economic indicator that reflects the propensity of individuals or economies to save.
The savings ratio, also known as the savings rate, is a financial metric that measures the proportion of disposable income that individuals or households save rather than spend on consumption. This ratio is typically expressed as a percentage and reflects the preference balance between present and future consumption.
A proposition in 19th-century classical economics, asserting that supply creates its own demand, implying that whatever quantity is supplied will also be demanded. It is named after the 19th-century French economist J.B. Say.
Individuals who work for an employer while a strike condition exists. The term, used by union members, is applied to nonunion and union members who cross a union picket line to perform work for an employer.
Scalable fonts are designed to be rendered at any size while maintaining high quality. The characters are stored as vector graphics and can be printed or displayed at various sizes without losing definition.
Scalage refers to a percentage deduction granted in business dealings with goods that are likely to shrink, leak, or otherwise vary in the amount or weight originally stated.
Scale is a versatile term often employed across multiple fields such as economics, labor, and modeling. In economics, scale pertains to the level of production efficiency as the volume of production changes. In labor, it denotes standardized wage rates for specific job types, such as those determined by union agreements. In modeling, scale signifies the relationship between the dimensions of a representation and the actual object.
The Scale Effect refers to the cost advantages that a business obtains due to the size, output, or scale of its operation. Primarily, the cost per unit of output generally decreases with increasing scale as fixed costs are spread out over more units of output.
A scale order is an investment strategy where a specific quantity of shares is bought or sold incrementally at predefined price intervals to average the purchasing or selling price over time.
The concept of scale relationship involves comparing objects, values, or phenomena using pre-defined scales, as well as determining proportions between model dimensions and real dimensions.
A scalper is a speculator who enters into quasi-legal or illegal transactions to turn a quick and sometimes unreasonable profit by reselling items at a higher price.
Traders in financial markets who engage in high-frequency trading, dealing very frequently for small gains and may hold a position for only a few minutes.
A scanner is a device capable of reading (scanning) typed characters from paper (hard) copy and automatically transferring this information to a digital format or another medium.
Scarcity refers to the limited nature of a resource or commodity, while scarcity value is the portion of a commodity's value that is attributable to its limited availability. Scarcity value arises when a good's demand surpasses its available supply.
The basic economic principle that most resources, goods, and services are available in limited quantities, requiring allocation based on willingness to pay the price set by supply and demand in a market economy.
A scatter diagram, or scatter plot, is a graphical representation used to display observations of data points plotted on the x-axis and y-axis to visualize any potential relationship or correlation between two variables. It is often employed in various fields, including accounting, statistics, and data analysis.
A broadcast media plan that schedules advertising announcements to run during a variety of radio and/or television programs. This schedule provides an advertiser with a wider audience for the advertising dollar than sponsoring a single program would achieve.
A scenic easement is a type of encumbrance on the title to a property designed to preserve it in a more or less natural or undeveloped state.
The term 'schedule' can have several different meanings within the context of accounting, tax legislation, and planning. In the UK, it is used extensively in tax legislation and accounting practices.
Schedule C is a tax form used by individuals to report income and expenses from a business or self-employed activity.
Schedule K-1 is a tax document used to report the incomes, deductions, and credits of partnerships, S corporations, estates, and trusts for tax purposes.
Schedule K-1 is a tax form used to report to each partner or beneficiary his or her share of income, losses, capital gains, and other tax information passed through from a partnership or trust to the individual.
Scheduled production refers to the planning and timetabling of the production process for specific products, detailing when and how each production sequence is to occur.
Scheduling is the process of planning and deciding the timetable of events, including when and where certain activities will take place. It is a crucial aspect of time management and resource allocation across various fields such as project management, operations, transportation, and personal planning.
A Scheme of Arrangement is an agreement between a company and its members or creditors to restructure the business or debts, often used during financial difficulties or takeovers and requires court sanction.
A scholarship is a form of financial aid that is awarded to students to support their education. Scholarships are typically based on academic or extracurricular achievements and do not need to be repaid.
Scienter refers to prior knowledge of operative facts, frequently signifying guilty knowledge. In pleadings, the term indicates that the alleged crime or tort was committed intentionally or with awareness of its illegality. In the context of fraud, scienter denotes the knowledge that an individual was making false representations with the intent to deceive.
A news story published before one by a rival news organization, often containing exclusive content or significant information.
In the law of agency, the scope of authority refers to the acts authorized for the accomplishment of the goal of the agency, including the actual authorization conferred by the principal and actions that are implicitly or apparently delegated to the agent.
The term 'scope of employment' refers to acts done while performing one's job duties. It is used to determine an employer's liability for the acts of its employees.
A corporate strategy used to avoid a hostile takeover by disposing of valuable assets, often resulting in a significant decline in the company's value and earnings power.
SCORE, formerly known as the Service Corps of Retired Executives, is a volunteer organization founded in 1964 that provides free management advice to small business owners.
Scorekeeping is a crucial aspect of management accounting where the performance of managers and operators is monitored, recorded, and reported to relevant levels of management for evaluation and decision-making.
Scrap refers to the remaining residual value of an asset at the end of its useful life, which can sometimes be recovered for a minimal monetary return, often referred to as salvage value. Additionally, scrap can arise from waste materials during a production process.
Scrap value, also referred to as salvage value, is the estimated residual value of an asset at the end of its useful life. This is the amount the owner expects to obtain from the sale of the asset following its complete depreciation.
A screen, also known as a monitor in computer terminology, is an electronic visual display that presents textual, graphical, and video information to the user.
Scrip refers to a certificate, written document, or token that ultimately serves as evidence of ownership of stocks, shares, or bonds. It can also be issuance documentation when additional shares are provided to current shareholders, known as a scrip issue.
A scrip issue, also known as a bonus issue, capitalization issue, or free issue, involves the issuance of new shares to existing shareholders to reflect accumulated profits in the reserves of a company. This process converts company reserves into issued capital without requiring shareholders to pay for the new shares.
The action of moving through a computer file or webpage to bring different information into view, as if the screen is a scroll being unrolled at one end and rolled up at the other.
A scroll bar is a user interface element that allows users to navigate through the contents of a computer screen window. It can be found on the side (vertical scroll bar) or the bottom (horizontal scroll bar) of most windows.
In common law, a seal is an impression on wax or another substance capable of being impressed, used to attest to the execution of an instrument. The term 'seal' and the letters 'L.S.' (locus sigilli, 'place of the seal') are commonly used for the same purpose today.
The 'Seal of Approval' is a certification granted by organizations such as Good Housekeeping Institute or Underwriter's Laboratories. This certification indicates that a product has undergone rigorous testing and has met the specific standards set by the granting organization, assuring consumers of product quality, safety, and reliability.
A form of cost estimate presented to a potential customer in which the bid is kept confidential to ensure fair competition among bidders.
SEAQ, or Stock Exchange Automated Quotations System, is an electronic trading platform used for pricing and trading UK and international stocks. It facilitates seamless and transparent trading by providing continuous bid and offer prices.
A search engine is a software system designed to perform web searches, allowing users to search for information on the World Wide Web using keywords or phrases. The results typically include a list of web pages, images, videos, and other types of files relevant to the query.
A statistical procedure applied to time series data to eliminate the effect of seasonal variations, providing a more accurate representation of underlying trends and cyclical movements.
Seasonal unemployment refers to joblessness that is expected at certain times of the year due to predictable and recurring variations in demand for labor. It commonly impacts industries like tourism, agriculture, and retail.
Seasonal unemployment is a type of unemployment that occurs predictably and regularly based on the calendar year, typically due to changes in weather, holidays, and other seasonal events that affect the demand for labor in certain industries.
Seasonality refers to the predictable changes or patterns in an economic or financial factor that occur at specific times of the year, which can impact business operations, financial markets, and economic planning.
A seasoned issue refers to securities that are typically from established companies, have gained a reputation for quality with the investing public, and enjoy a high level of liquidity in the secondary market.
A seasoned loan is a bond or mortgage on which several payments have been collected. These types of loans are considered lower risk and more marketable than newly issued loans.
**Seat** is a figurative term that refers to an individual's or firm's membership on a securities or commodities exchange. A seat grants the holder the right to trade on the floor of the exchange and to access various trading privileges. Traditionally, seats are bought and sold at prices determined by supply and demand within the marketplace. The ownership of a seat is often considered prestigious and can be highly valuable due to the privileges and opportunities it confers upon the holder.
The Electronic Data Gathering, Analysis, and Retrieval system (EDGAR) is a platform used by the U.S. Securities and Exchange Commission (SEC) to increase efficiency and accessibility in the collection, submission, and dissemination of financial reports from public companies and other entities.
A residence that is not one's principal residence. A taxpayer may deduct interest up to certain limits on two personal residences, provided certain occupancy requirements are met.
A subordinated lien created by a mortgage loan over the amount of a first mortgage, often used to reduce the amount of a cash downpayment or to raise cash in refinancing.
