Key Terms Flashcards
Advertising
Paid for communication to customers, aimed at informing or persuading
Adverse variance
A difference between an actual and budgeted amount which is negative e.g higher costs
Assessment centres
Where a recruiting firm runs a set of extended selection procedures.
Automation
The replacement
Boston matrix
A model which analyses the product proof olio of a business with the four category’s of Cash Cow, Rising Star, Problem Child and Dog
Break even
The point at which total sales revenue equal the total costs
Budget
A detailed plan of income and expenses over a period of time
Capital
The money invested into a business, the share capital invested + the profits retained in company
Cash flow
The movement of money into and out of a business
Chain of command
The line of authority in an organisation
Competitive advantage
One or more features of a business’s product or service which gives it an advantage over the competition.
Contribution
The difference between total sales revenue and variable costs
Copyright
A set of exclusive rights regulating the use of a particular expression of an idea or infomation
Cost plus pricing
Price is set by working out total cost of prudent and adding a profit margin
Credit control
The management of debtors to ensure that sales paid for on credit are paid when due
