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Product/service mix

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Definition of Product/service mix

Product/service Mix Image 1

Product/service mix

See sales mix.



Related Terms:

Aggregate Production Function

An equation determining aggregate output as a function of aggregate inputs such as labor and capital.


asset mix

The weighting of assets in an investment portfolio among different asset classes (e.g. shares, bonds, property, cash, overseas investments.


by-product

an incidental output of a joint process; it is salable,
but the sales value of by-products is not substantial enough
for management to justify undertaking the joint process; it
is viewed as having a higher sales value than scrap


By-product

A product that is an ancillary part of the primary production process, having
a minor resale value in comparison to the value of the primary product being
manufactured. Any proceeds from the sale of a by-product are typically offset
against the cost of the primary product, or recorded as miscellaneous revenue.


By-product

A material created incidental to a production process, which can be
sold for value.



Concentration services

Movement of cash from different lockbox locations into a single concentration
account from which disbursements and investments are made.


cost of production report

a process costing document that
details all operating and cost information, shows the computation
of cost per equivalent unit, and indicates cost assignment
to goods produced during the period


Product/service Mix Image 2

Debt service

Interest payment plus repayments of principal to creditors, that is, retirement of debt.


Debt-service coverage ratio

Earnings before interest and income taxes plus one-third rental charges, divided
by interest expense plus one-third rental charges plus the quantity of principal repayments divided by one
minus the tax rate.


Debt service parity approach

An analysis wherein the alternatives under consideration will provide the firm
with the exact same schedule of after-tax debt payments (including both interest and principal).


Direct materials mix variance

The variance between the budgeted and actual mixes of
direct materials costs, both using the actual total quantity used. This variance isolates
the unit cost of each item, excluding all other variables.


economic production run (EPR)

an estimate of the number
of units to produce at one time that minimizes the total
costs of setting up production runs and carrying inventory


equivalent units of production (EUP)

an approximation of the number of whole units of output that could have been
produced during a period from the actual effort expended
during that period; used in process costing systems to assign
costs to production


Factor of Production

A resource used to produce a good or service. The main macroeconomic factors of production are capital and labor.


Full-service lease

Also called rental lease. Lease in which the lessor promises to maintain and insure the
equipment leased.


grade (of product or service)

the addition or removal of product
or service characteristics to satisfy additional needs, especially price


Product/service Mix Image 3

Gross Domestic Product

Total output of final goods and services produced within a country during a year.


Gross domestic product (GDP)

The market value of goods and services produced over time including the
income of foreign corporations and foreign residents working in the U.S., but excluding the income of U.S.
residents and corporations overseas.



Gross National Product

Total output of final goods and services produced by a country's citizens during a year.


Gross national product (GNP)

Measures and economy's total income. It is equal to GDP plus the income
abroad accruing to domestic residents minus income generated in domestic market accruing to non-residents.


Index Portfolio Rebalancing Service (IPRS)

Index Portfolio Rebalancing service (IPRS) is a comprehensive investment service that can help increase potential returns while reducing volatility. Several portfolios are available, each with its own strategic balance of Index Funds. IPRS maintains your personal asset allocation by monitoring and rebalancing your portfolio semi-annually.


Information services

Organizations that furnish investment and other types of information, such as
information that helps a firm monitor its cash position.


Internal Revenue Service

A federal agency empowered by Congress to interpret and enforce tax-related laws.


Investment product line (IPML)

The line of required returns for investment projects as a function of beta
(nondiversifiable risk).


Joint product

A product that has the highest sales value from among a group of products
that are the result of a joint production process.


labor mix variance

(actual mix X actual hours X standard rate) - (standard mix X actual hours X standard rate);
it presents the financial effect associated with changing the
proportionate amount of higher or lower paid workers in production


Lean production

The technique of stripping all non-value-added activities from
the production process, thereby using the minimum possible amount of resources
to accomplish manufacturing goals.


material mix variance

(actual mix X actual quantity X standard price) - (standard mix X actual quantity X standardprice);
it computes the monetary effect of substituting a nonstandard mix of material



McNamara-O'Hara Service Contract Act of 1965

A federal Act requiring federal contractors to pay those employees working on a federal contract at
least as much as the wage and benefit levels prevailing locally.


mix

any possible combination of material or labor inputs


Mix ticket

A list of the ingredients required for a blending operation.


mixed cost

a cost that has both a variable and a fixed component;
it varies with changes in activity, but not proportionately


National Income and Product Accounts

The national accounting system that records economic activity such as GDP and related measures.


Net Domestic Product

GDP minus depreciation.


Net National Product

GNP minus depreciation.


Non-financial services

Include such things as freight, insurance, passenger services, and travel.


Non-production overhead

A general term referring to period costs, such as selling, administration and financial expenses.


optimal mix of capital

the combination of capital sources at which the lowest weighted average cost of capital is achieved


Process flow production

A production configuration in which products are continually
manufactured with minimal pauses or queuing.


process productivity

the total units produced during a period
using value-added processing time


Product

Any item intended for sale.


product complexity

an assessment about the number of components in a product


product contribution margin

the difference between selling price and variable cost of goods sold


Product cost

The cost of goods or services produced.


product cost

This is a key factor in the profit model of a business. product
cost is the same as purchase cost for a retailer or wholesaler (distributor).
A manufacturer has to accumulate three different types of production
costs to determine product cost: direct materials, direct labor, and
manufacturing overhead. The cost of products (goods) sold is deducted
from sales revenue to determine gross margin (also called gross profit),
which is the first profit line reported in an external income statement
and in an internal profit report to managers.


product cost

a cost associated with making or acquiring inventory


Product cost

The total of all costs assigned to a product, typically including direct
labor, materials (with normal spoilage included), and overhead.


Product cycle

The time it takes to bring new and/or improved products to market.


product life cycle

a model depicting the stages through
which a product class (not necessarily each product) passes


product line margin

see segment margin


Product market

A business’s investment in technology, people and materials in order to make, buy and sell products or services to customers.


product- (or process-) level cost

a cost that is caused by the development, production, or acquisition of specific products or services


Product risk

A type of mortgage-pipeline risk that occurs when a lender has an unusual loan in production or
inventory but does not have a sale commitment at a prearranged price.


product variety

the number of different types of products
produced (or services rendered) by a firm


Production-flow commitment

An agreement by the loan purchaser to allow the monthly loan quota to be
delivered in batches.


Production overhead

A general term referring to indirect costs.


Production payment financing

A method of nonrecourse asset-based financing in which a specified
percentage of revenue realized from the sale of the project's output is used to pay debt service.


Production yield variance

The difference between the actual and budgeted proportions
of product resulting from a production process, multiplied by the standard unit cost.


productive capacity

the number of total units that could be
produced during a period based on available equipment time
productive processing time the proportion of total time that
is value-added time; also known as manufacturing cycle
efficiency


Productivity

Output per unit of input, usually measured as output per hour of labor.


Sales mix

The mix of product/services offered by the business, each of which may be aimed at different customers, with each product/service having different prices and costs.


sales mix

the relative combination of quantities of sales of the various products that make up the total sales of a company


Sales Revenue Revenue recognized from the sales of products as opposed to the provision of

services.


service company

an individual or firm engaged in a high or moderate degree of conversion that results in service output


service department

an organizational unit that provides one or more specific functional tasks for other internal units


Service Revenue

Revenue recognized from the provision of services as opposed to the sale of
products.


service time

the actual time consumed performing the functions
necessary to provide a service


Short-term investment services

services that assist firms in making short-term investments.


Uniformed Services Employment and Reemployment Rights Act of 1994

A federal act that minimizes the impact on people serving in the Armed Forces
when they return to civilian employment by avoiding discrimination and increasing
their employment opportunities.


UNITS OF PRODUCTION

A depreciation method that relates a machine’s depreciation to the number of units it makes each
accounting period. The method requires that someone record the machine’s output each year.



 

 

 

 

 

 

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