Flashcards in Finance - Key Terms Deck (49):
1
Mechanism
When machinery is used, but labour is required the work it
2
Automation
When machinery is used and a computer controls it
3
Lean production
A Japanese production system, helps insure that was is kept to a minimum. On feature is JIT
4
Just-in-time (JIT)
Materials are not stored but are sued immediately when they arrive at the factory
5
Job production
Method of production involving production of each product individually, like a one-off
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Batch production
Used when there are set stages, one stage has to be completed before the next can start
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Flow/mass production
A continuous movement of items through the production process
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Flow/mass production
A continuous movement of items through the production process
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Flow/mass production
A continuous movement of items through the production process
10
Division of labour
The organisation of production into a number of specialised 'simple' repetitive processes
11
Specialisation
Occurs where workers specialise in carrying of simple production tasks
12
Process production
A series of automated processes, which when applied to a variety of raw materials, results in a large amount of a fined product
13
Added value
Increased worth of a product, i.e. Through branding, quality, convenience, service, design and USP
14
Added value
Increased worth of a product, i.e. Through branding, quality, convenience, service, design and USP
15
Efficiency
Maximising productivity with minimum wasted effort and expense
16
Total quantity management (TQM)
The process where all workers are responsible for quality throughout the process of production
17
Opportunity cost
The cost of missing out of something else
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Internal/external finance
Comes from within/outside the business
19
Bank loan
Money borrowed from the bank for a stated purpose
20
Leasing
Obtaining an item for a time period, at the end of which the item is returned
21
Hire purchase
When you pay monthly for an item, the item becomes your when the (larger) final payment is made
22
Taking a new partner
Sell of part of the business for a new partner, they may bring new skills
23
Trade credit
When a business doesn't need to pay for a certain time period, 30, 60, 90 days
24
Trade credit
When a business doesn't need to pay for a certain time period, 30, 60, 90 days
25
Retained profit
Profit made that can be reinvested, stays within the business at all times
26
Sale of assets
Selling of assets to make cash
27
Mortgage
A loan used specifically to purchase a property
28
Overdraft
An agreement with the bank where a business can withdraw more than it has
29
Grants
An amount of money given to a business form the government, for a specific reason
30
Owner investment
When an owner may invest their own money for business development
31
Cash in bank
Money owned by a business that has been built up, used for whatever
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Share issue
What limited company raises money by selling shares.
33
Fixed costs
Remain the same, regardless of output
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Variable costs
Do change when output changes
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Breakeven
The point at which sales at the same as costs
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Margin of safety
The difference between the actual level of output and the breakeven point
37
Cash flow
The movement of money in and out of the business
38
Inflows/income
Money received by the businesses
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Outflows/expenditure
Money paid out by the businesses
40
Net cash flow
The difference between the inflows and outflows
41
Opening/closing balance
The amount of money in a business account at any particular time, usually the beginning and end of the month
42
Gross profit
The amount of profit made by a businesses as a result of buying and selling goods or services, without paying for any of the day to day running costs
43
Net profit
The profit made as a result of buying and selling goods as well as costs of the day to day running costs
44
Expenses
A cost of running a business
45
Accounting
The process of keeping financial records
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Profit margin
The ratio of profit over revenue, expressed as a percentage
47
Imports
Goods and services bought for other countries which leads to money going out of the UK
48
Exports
Goods and services which are sold to other countries and which lead to payments into the UK
49