Key Terms S - W Flashcards Preview

AQA Business Studies Unit 2 > Key Terms S - W > Flashcards

Flashcards in Key Terms S - W Deck (21)
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1

Sub-contracting (outsourcing)

Delegation, by one firm, of a portion of production processes, under contract, to another firm

2

Supplier

An individual, business or organisation which provides goods or services to a customer or consumer

3

Total quality management (TQM)

An attitude to quality where the aims are zero defects and total customer satisfaction

4

Training

The provision of work related education or skills development

5

Unit costs

The average production cost per unit

6

Unique selling point (USP)

A feature of a product or service that differentiates of amongst the competition

7

Variance

The difference between the budgeted amounts and the actual amounts

8

Waste

Raw materials which are not retained in the production process

9

Workforce role

The tasks involved in a particular level or grade of job

10

Workload

The amount of work assigned to a particular worker over a period of time

11

Stocks (inventory)

Raw materials, works-in-progress and finished goods held for resale

12

Distribution channel

Refers to how a business gets it's product to the customer, with or without the use of intermediaries

13

Price leader

A market leader business whose price changes are followed by rivals

14

Personal selling

Face-to-face selling in which a seller attempts to persuade a buyer to make a purchase

15

Working Capital Cycle (WCC)

The amount of time it takes to turn the net current assets and current liabilities into cash

16

Cash conversion cycle (CCC)

The length of time it takes for a company to convert resource inputs into cash flows

17

Product rationalisation

The process of reducing the amount of products sold in order to invest more in the products that make the most profit

18

Lean production

A systematic method for the elimination of waste within a manufacturing process

19

Fringe benefits

An extra benefit supplementing an employee's money wage or salary

20

Management by exception

The practice of examining the financial and operational results of a business, and only bringing issues to the attention of management if results represent substantial differences from the budgeted or expected amount

21

Mystery Shopping

A tool used externally by market research companies to measure the quality of service