The term '24/7' denotes the continuous operation or availability of a service, activity, or resource for 24 hours a day, seven days a week without interruption.
Accounts receivable (AR) refers to the balance of money owed to a firm for goods or services delivered or used but not yet paid for by customers. It is an essential component of a company’s balance sheet and is considered a current asset.
Administration expenses are the overhead costs incurred for the general operation of a business. These include salaries of administrative staff, utilities, office supplies, and other indirect expenses.
Administrative expenses refer to the costs that are not directly tied to specific business operations, such as manufacturing or sales, but are necessary for the overall administration and operation of a company.
Any supplementary item or service that supports the main operations or revenues of a business or activity, but is not the primary focus of that business or activity.
Backward vertical integration is a strategic process where a firm takes ownership or increased control of its supply systems, aiming to streamline operations, better control costs, and eliminate intermediaries, thereby enhancing competitiveness in the marketplace.
A bin card, also known as a store card, is used in inventory management to track the receipts, issues, and balances of individual stock items. This card is attached to each bin or storage location to record inventory movement and maintain an accurate balance.
The Boomerang Effect refers to the phenomenon where exported technology is used to manufacture products that compete with those produced by the original exporter.
A branch office is a place of operation for a firm that is located apart from the main office. It is owned by the firm owner but is managed by another person.
The act of ceasing trading activities within a business, including winding down operations and finalizing outstanding financial obligations.
A business day typically refers to the hours when most businesses are in operation, commonly from 9 A.M. to 5 P.M. In finance, a business day is defined as a day when financial markets are open for trading.
A business enterprise refers to a commercial entity that is established to conduct business and earn profit. It encompasses all the activities and operations that a business undertakes to produce and sell goods or services.
A business office is a physical location devoted to the conduct of business activities. It is dedicated to promoting a particular business and is considered a necessary cost of doing business.
A buyout involves purchasing at least a controlling percentage of a company's stock to take over its assets and operations. It can be accomplished through negotiation or a tender offer.
A call center is a facility equipped to handle a large volume of telephone calls, mainly for taking orders, serving customers, or for selling products through telemarketing. Call centers can be primarily inbound or outbound, depending on their function.
Capital requirement refers to the amount of capital a business needs to sustain its operations, including both long-term and working capital necessary for maintaining day-to-day functionality and growth.
Capital resources are assets such as factories, buildings, and equipment used in the production of goods. These are crucial for the growth and development of industries.
In the manufacturing industry, the cash cycle represents the interval between the outlay of cash to procure raw materials and the receipt of payment for the manufactured goods produced from them.
Cash float refers to the notes and coins held by a business to ensure they can provide change to customers during transactions. This concept is essential for efficient cash management and smooth operational flow in day-to-day transactions.
Cash outflows are the financial transactions where a business expends cash, which is essential for managing liquidity and business operations.
Centralized management occurs when day-to-day business operations are handled by appointed officers rather than the shareholders, a characteristic that indicates that an organization may be taxed as a corporation.
A Certificate to Commence Business is a document issued by the Registrar of Companies to a public company upon incorporation, certifying that the nominal value of the company's share capital is at least equal to the authorized minimum. This certificate allows the company to start conducting business and exercising its borrowing powers.
A chain store is an individual retail store that is a part of a group of similar retail stores managed and owned by the same entity, providing consistent products, services, and branding across multiple locations.
A check signer is a machine that mechanically signs checks, typically creating a facsimile signature. This automated process ensures efficiency in handling large volumes of check transactions.
A Chief Operating Officer (COO) is an executive role responsible for overseeing the day-to-day operational functions of an organization. This role is crucial for ensuring efficient operations and achieving strategic goals.
Company officers are high-ranking employees or executives who manage the day-to-day operations of a business and are responsible for the company's overall strategic direction.
Cost estimation is the process of predicting the cost of a project, product, or service by assessing the unit costs of direct costs and overheads for the purposes of planning, control, and pricing.
The total costs incurred to ensure good quality or rectify poor quality. By enhancing quality, managers can reduce costs and boost profits. These costs are categorized into prevention, appraisal, internal failure, and external failure costs.
Current liabilities are debts or obligations that a company expects to pay off within one year as part of normal business operations. Examples include accounts payable, short-term loans, and the current portion of long-term loans.
In business or individual practices, 'custom' refers to habitual tendencies, traditional policies, or usual activities routinely followed as a matter of course. These practices can shape organizational behavior and culture and affect various business decisions and operations.
Discontinued operations refer to components of a business that have been sold or permanently closed down, and their financial results are separated from continuing operations for reporting purposes.
Divestment is the process of selling off assets, subsidiaries, or business segments to realize value or streamline operations. It serves as the opposite of investment.
Doing business refers to carrying on, conducting, or managing a business. A corporation is considered to be doing business in a state if it performs the ordinary functions for which it was organized or engages in activities that subject it to the laws and jurisdiction of that state.
Federal Flood Insurance provides coverage to residents, including businesses and nonbusiness operations, in communities qualified under the National Flood Insurance Program (NFIP), offering subsidized and nonsubsidized premium rates for structures and their contents.
Financial distress refers to a situation in which the activity of a business is influenced by the possibility of impending insolvency. This state incurs various costs, ranging from those related to bankruptcy to costs arising from stakeholders' changes in behavior and managerial focus.
Fixed-asset investment refers to the expenditure on tangible assets that are likely to have a life of more than one year. These investments are essential for business operations and often include property, machinery, and infrastructure.
A franchise is a license granted by a company to an individual or firm to operate under the company's brand, using its name, products, services, promotions, selling, distribution, and display methods. It also refers to a right to market company goods or services in a specific territory.
Furniture, Fixtures, and Equipment (FF&E) are tangible assets that businesses use to enrich their operations. Unlike real property, these items are typically moveable and are not permanently affixed to buildings.
A general expense refers to costs incurred during business operations that do not fall under categories such as selling, administrative, or cost of goods sold (COGS). These are typically miscellaneous expenses essential for running a business but not directly tied to core operational sectors.
General expenses are those expenditures by an organization that cannot be conveniently categorized into any other specific cost classifications, encompassing a wide variety of costs essential for business operations.
A general partner is a member of a partnership who has unlimited liability for the partnership's debts and obligations, actively managing and operating the business.
A divisional unit within an organization structured on the basis of its operational location, allowing for localized decision-making and management.
Increasing costs refer to the scenario in an industry or firm where unit costs escalate as the quantity of output rises. This may be due to factors such as the need for more resources, inefficiencies, or production bottlenecks.
Indirect materials cost refers to the expenses incurred in providing materials that are not directly traceable to a specific product or job but are necessary for the manufacturing process.
Indirect overhead refers specifically to overhead costs that cannot be directly attributed to the production of a specific product but are necessary for the overall operation of the business.
Products or services purchased for use in the production of other goods or services, in the operation of a business, or for resale to other consumers. Industrial products include heavy machinery, raw materials, tools, and computer equipment.
Internal data refers to information, facts, and data available from within a company's information system. This data is crucial for various business operations but is generally not accessible by outside parties without the company's express permission.
Internal financing refers to funds generated from a company's normal operations, in contrast to external financing, which involves borrowings and new equity.
Inventory shortage, also known as shrinkage, refers to the unexplained difference between the physical count of inventory and the amount recorded in accounting records. This discrepancy can be due to various factors, ranging from normal evaporation of a liquid to theft.
The management cycle refers to the established periods in which specific management operations occur, typically including processes such as planning, executing, monitoring, and closing projects or tasks.
A Management Information System (MIS) is an organized approach to gathering critical data and information, which supports decision-making processes within an organization. MIS integrates technology, people, and business processes to facilitate efficient management operations.
A merchandise allowance is a sum of money provided or allowed for merchandise returned due to poor quality or overstocking.
Metered Mail refers to letters and packages that are stamped by a postage meter rather than using traditional postage stamps. This method is often implemented by businesses for convenience, accuracy, and cost-effectiveness in handling bulk mailing.
Miscellaneous Income refers to revenue that is unrelated to and much smaller than that from the main business operation. It usually originates from incidental or auxiliary activities.
Net current assets, also known as working capital, refer to the excess of current assets over current liabilities and represent the capital available to run day-to-day operations within a business.
The normal operating cycle is the period required to convert cash into raw materials, raw materials into inventory finished goods, finished goods inventory into sales and accounts receivable, and finally, accounts receivable back into cash.
Office management involves organizing and administering activities that occur in a day-to-day business office environment. An office manager is responsible for handling these administrative responsibilities.
Operating expenses are the costs and operating revenues are the income incurred and generated by an organization in the normal course of business, excluding any extraordinary items.
Operational control refers to the power of management over the daily activities of a business, guiding its day-to-day operations, resources, and performance.
Any activities undertaken by an organization as part of its business, along with related undertakings, incidental activities, and arising events, typically included within routine operations.
The common practices of commercial transactions that refer to necessary activities normal and incidental to a business's operations.
Coverage for bodily injury and property damage liability resulting from the ownership, use, and/or maintenance of an insured business's premises as well as operations by the business anywhere in the United States or Canada.
Plant assets, also known as fixed assets, are composed of land, buildings, machinery, furniture, fixtures, and other equipment permanently employed in business operations. In some contexts, the term 'plant' may refer specifically to buildings or land and buildings.
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.
A pivotal area within an organization where production activities are conducted, focusing on tracking and managing production-related expenses.
In the USA, a quarterly report is a financial report issued by a company every three months, containing essential financial statements and a narrative overview of business operations.
The term 'red tape' refers to the necessity to complete extensive paperwork to gain approval by several people in order to accomplish a goal. It is often associated with bureaucratic processes and inefficiencies.
Reengineering involves making major structural changes in a corporation or important business operations to improve efficiency and productivity.
The minimum level of inventory at which a new order must be placed, to prevent stockouts and ensure continuous business operations.
Reserve-stock control is a technique designating appropriate inventory levels for the maintenance of business operations until new merchandise can be supplied. It considers the length of time necessary to physically replenish needed inventory.
A resident buyer is an individual who has an office in an important merchandise center and provides valuable merchandising information.
A sales office is a manufacturer-owned office that usually has no inventory and is primarily intended to increase customer sales.
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.
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.
SG&A expenses are essential for the daily operations of a business but do not include production costs. These expenses are tracked on a company's profit and loss statement and cover a variety of areas such as sales salaries, advertising, office expenses, and more.
Extra compensation paid as inducement to accept shift work, especially during evening and midnight hours.
Shrinkage refers to the difference between the actual physical inventory and the amount that should be on hand according to the book inventory, as well as weight loss experienced in various contexts such as natural grain drying and commodity processing.
The shutdown point represents the output price level at which a firm's revenues exactly cover fixed costs. Below this price level, a firm's losses would be minimized by ceasing operations as continued production would generate greater losses.
A sleeping partner is an individual who invests capital in a partnership but does not participate in daily business operations. This person shares in the profits and bears the legal rights and obligations of ownership as specified in the partnership agreement.
Staff refers to personnel employed in an organization, performing various roles and functions necessary for the organization's operations. It can also denote specific management functions in the context of line and staff management.
A standing order is an instruction to make repeated shipments of goods without requiring individual reorder confirmations. These orders are continuous, adhering to predefined quantity and time specifications.
The initial expenditure incurred in the setting up of an operation or project. The start-up costs may include the capital investment costs plus the initial revenue expenditure prior to the start of operations.
A statement can refer to a summary of financial transactions, a document showing the status of assets and liabilities, or an instruction in a computer program.
The Statement of Cash Flow is a financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources. It also includes all cash outflows that pay for business activities and investments during a given period. Essentially, it acts as a reconciliation of the opening and closing cash balance for a company.
Stock reconciliation is a crucial process in inventory management that ensures the actual stock count aligns with recorded inventory levels, thus maintaining accurate financial records and aiding in effective business operations.
Stockout cost refers to the costs incurred by a firm when its current inventory is exhausted for one or more items. Lost sales revenue is a primary consequence when the firm is unable to meet current orders because of a stockout condition.
Stretchout refers to two distinct concepts: accelerating the work pace without additional compensation for workers and extending the time needed to pay for a purchase.
A supplier is an individual or entity that provides goods, materials, or services to another organization, typically in a commercial context.
Supply risk refers to the inherent risks associated with the unavailability or disruption of raw materials necessary for the operation of a business or project.
A support cost centre refers to a department or unit within an organization that provides essential services to other departments, enabling them to operate smoothly and efficiently without directly contributing to the final product or service.
Indication that organizational management procedures are followed very closely. When an organization is run like a tight ship, few allowances are permitted for unorthodox procedures.
Total revenue is the amount of revenue a firm receives from sales at varying levels of output.
Property placed on or annexed to rented real estate by a tenant for the purpose of conducting a trade or business. The law makes provisions for, and leases often expressly permit (or require), the tenant's removal of such fixtures at the end of their tenancy.
Unintended or unplanned investment refers to a buildup in inventory when sales are less than anticipated. This situation forces a company to invest in the excess inventory until sales catch up, during which production may be reduced or halted.
Understanding the concept of Unrelated Business Income (UBI) which refers to the income generated from activities unrelated to a not-for-profit organization's tax-exempt purpose. A corporate tax is applied to such income to ensure fair competition with taxable organizations.
Visibility refers to the immediate insights that managers gain into a business operation through effective supply chain management. It involves tracking and managing all aspects of the supply chain process, from procurement of raw materials to delivery of the final product.
A Word Processing Center serves as the headquarters of word processing operations for a company, catering to several on-site and/or off-site stations.
Working capital is essential for financing the day-to-day operations of a company, calculated as the difference between current assets and current liabilities.
A workweek refers to the standard number of days and hours that employees are scheduled to work within a week in an organization. It varies across different organizations depending on their operational requirements.
