Financial Terms
Distribution center

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Definition of Distribution center

Distribution Center Image 1

Distribution center

A branch warehouse containing finished goods and service
items intended for distribution directly to customers.

Related Terms:

Commodities Exchange Center (CEC)

The location of five New York futures exchanges: Commodity
Exchange, Inc. (COMEX), the New York Mercantile exchange (NYMEX), the New York Cotton Exchange,
the Coffee, Sugar and Cocoa exchange (CSC), and the New York futures exchange (NYFE). common size
statement A statement in which all items are expressed as a percentage of a base figure, useful for purposes of
analyzing trends and the changing relationship between financial statement items. For example, all items in
each year's income statement could be presented as a percentage of net sales.

Cumulative probability distribution

A function that shows the probability that the random variable will
attain a value less than or equal to each value that the random variable can take on.


Payments from fund or corporate cash flow. May include dividends from earnings, capital
gains from sale of portfolio holdings and return of capital. Fund distributions can be made by check or by
investing in additional shares. Funds are required to distribute capital gains (if any) to shareholders at least
once per year. Some Corporations offer Dividend Reinvestment Plans (DRP).

Frequency distribution

The organization of data to show how often certain values or ranges of values occur.

Lognormal distribution

A distribution where the logarithm of the variable follows a normal distribution.
Lognormal distributions are used to describe returns calculated over periods of a year or more.

Money center banks

Banks that raise most of their funds from the domestic and international money markets, relying less on depositors for funds.

Normal probability distribution

A probability distribution for a continuous random variable that is forms a
symmetrical bell-shaped curve around the mean.

Distribution Center Image 2

Probability distribution

Also called a probability function, a function that describes all the values that the random variable can
take and the probability associated with each.

Reinvoicing center

A central financial subsidiary used by an MNC to reduce transaction exposure by having
all home country exports billed in the home currency and then reinvoiced to each operating affililate in that
affiliate's local currency. It can also be used as a netting center.

Skewed distribution

Probability distribution in which an unequal number of observations lie below and
above the mean.

Standardized normal distribution

A normal distribution with a mean of 0 and a standard deviation of 1.

Probability Distribution

A list of all possible outcomes and the chance of each outcome

activity center

a segment of the production or service
process for which management wants to separately report
the costs of the activities performed

cost center

a responsibility center in which the manager has
the authority to incur costs and is evaluated on the basis
of how well costs are controlled

distribution cost

a cost incurred to warehouse, transport, or deliver a product or service

investment center

a responsibility center in which the manager
is responsible for generating revenues and planning
and controlling expenses and has the authority to acquire,
dispose of, and use plant assets to earn the highest rate
of return feasible on those assets within the confines and
to the support of the organization’s goals

Distribution Center Image 3

probability distribution

a range of possible values for which each value has an assigned likelihood of occurrence

profit center

a responsibility center in which managers are responsible for generating revenues and planning and controlling all expenses

pseudo microprofit center

a center for which a surrogate
of market value must be used to measure output revenue

real microprofit center

a center whose output has a market value

responsibility center

a cost object under the control of a manager

revenue center

a responsibility center for which a manager is accountable only for the generation of revenues and has no control over setting selling prices, or budgeting or incurring costs

Normal (bell-shaped) distribution

In statistics, a theoretical frequency
distribution for a set of variable data, usually represented by a bell-shaped
curve symmetrical about the mean.

Profit center

An entity within a corporation against which both revenues and costs are
recorded. This results in a separate financial statement for each such entity, which
reveals a net profit or loss, as well as a return on any assets used by the entity.

Distribution inventory

Inventory intended for shipment to customers, usually
comprised of finished goods and service items.







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