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Financial Terms | |
Product |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
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Definition of ProductProductAny item intended for sale.
Related Terms:Aggregate Production FunctionAn equation determining aggregate output as a function of aggregate inputs such as labor and capital. by-productan incidental output of a joint process; it is salable, By-productA product that is an ancillary part of the primary production process, having By-productA material created incidental to a production process, which can be cost of production reporta process costing document that economic production run (EPR)an estimate of the number equivalent units of production (EUP)an approximation of the number of whole units of output that could have been ![]() Factor of ProductionA resource used to produce a good or service. The main macroeconomic factors of production are capital and labor. grade (of product or service)the addition or removal of product Gross Domestic ProductTotal 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 Gross National ProductTotal 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 Investment product line (IPML)The line of required returns for investment projects as a function of beta Joint productA product that has the highest sales value from among a group of products Lean productionThe technique of stripping all non-value-added activities from ![]() National Income and Product AccountsThe national accounting system that records economic activity such as GDP and related measures. Net Domestic ProductGDP minus depreciation. Net National ProductGNP minus depreciation. Non-production overheadA general term referring to period costs, such as selling, administration and financial expenses. Process flow productionA production configuration in which products are continually process productivitythe total units produced during a period product complexityan assessment about the number of components in a product product contribution marginthe difference between selling price and variable cost of goods sold Product costThe cost of goods or services produced. product costThis is a key factor in the profit model of a business. product product costa cost associated with making or acquiring inventory ![]() Product costThe total of all costs assigned to a product, typically including direct Product cycleThe time it takes to bring new and/or improved products to market. product life cyclea model depicting the stages through product line marginsee segment margin Product marketA business’s investment in technology, people and materials in order to make, buy and sell products or services to customers. product- (or process-) level costa cost that is caused by the development, production, or acquisition of specific products or services Product riskA type of mortgage-pipeline risk that occurs when a lender has an unusual loan in production or Product/service mixSee sales mix. product varietythe number of different types of products Production-flow commitmentAn agreement by the loan purchaser to allow the monthly loan quota to be Production overheadA general term referring to indirect costs. Production payment financingA method of nonrecourse asset-based financing in which a specified Production yield varianceThe difference between the actual and budgeted proportions productive capacitythe number of total units that could be ProductivityOutput per unit of input, usually measured as output per hour of labor. Sales Revenue Revenue recognized from the sales of products as opposed to the provision ofservices. UNITS OF PRODUCTIONA depreciation method that relates a machine’s depreciation to the number of units it makes each ABMsee activity-based management Absorption costingA method of costing in which all fixed and variable production costs are charged to products or services using an allocation base. absorption costinga cost accumulation and reporting Absorption costingA methodology under which all manufacturing costs are assigned Accounts‘Buckets’ within the ledger, part of the accounting system. Each account contains similar transactions (line items) that are used for the production of financial statements. Or commonly used as an abbreviation for financial statements. accretionan increase in units or volume caused by the addition activity analysisthe process of detailing the various repetitive actions that are performed in making a product or activity-based budgeting (ABB)planning approach applying activity drivers to estimate the levels and costs of activities necessary to provide the budgeted quantity and Activity-based costingA method of costing that uses cost pools to accumulate the cost of significant business activities and then assigns the costs from the cost pools to products or services based on cost drivers. activity based costing (ABC)A relatively new method advocated for the activity-based costing (ABC)a process using multiple cost drivers to predict and allocate costs to products and services; Activity-based costing (ABC)A cost allocation system that compiles costs and assigns activity-based management (ABM)a discipline that focuses on the activities incurred during the production/performance process as the way to improve the value received activity centera segment of the production or service activity drivera measure of the demands on activities and, ActuaryOne who uses statistical information to evaluate the probability of future events and prices insurance products. AdvanceA payment made by a customer to the company, or by the company to a Advance material requestVery early orders for materials before the completion Aggregate planningA budgeting process using summary-level information to Allocation base A measure of activity or volume such as labourhours, machine hours or volume of production applied overheadthe amount of overhead that has been assigned to Work in Process Inventory as a result of productive activity; credits for this amount are to an overhead account approximated net realizable value at split-off allocationa method of allocating joint cost to joint products using a asset turnovera ratio measuring asset productivity and showing the number of sales dollars generated by each dollar of assets AssetsA firm's productive resources. AssurisAssuris is a not for profit organization that protects Canadian policyholders in the event that their life insurance company should become insolvent. Their role is to protect policyholders by minimizing loss of benefits and ensuring a quick transfer of their policies to a solvent company where their benefits will continue to be honoured. Assuris is funded by the life insurance industry and endorsed by government. If you are a Canadian citizen or resident, and you purchased a product from a member life insurance company in Canada, you are protected by Assuris. attribute-based costing (ABC II)an extension of activitybased costing using cost-benefit analysis (based on increased customer utility) to choose the product attribute Average Collection PeriodAverage number of days necessary to receive cash for the sale of Back flushThe subsequent subtraction from inventory records of those parts used BackwardationA market condition in which futures prices are lower in the distant delivery months than in BatchA group of similar products produced together. Batch costA cost that is incurred when a group of products or services are produced, Bill and Hold Practicesproducts that have been sold with an explicit agreement that delivery Bill of materialsA listing of all the materials and quantities that go to make up a completed product. bill of materialsa document that contains information about Bill of materialsAn itemization of the parts and subassemblies required to create a Bill of materials (BOM)A listing of all parts and subassemblies required to produce one Blend offThe reintroduction of a faulty product into a process production flow by BottleneckAn operation in the midst of a manufacturing or service process in which the Breakeven pointThe sales level at which a company, division, or product line makes a Breeder bill of materialsA bill of material that accounts for the generation and budget variancethe difference between total actual overhead build missiona mission of increasing market share, even at CapacityThe maximum volume of products or services that can be produced given limitations of space, capacitya measure of production volume or some other activity base Capacity utilizationThe proportion of capacity that is able to be utilized to fulfil customer demand for products Capitala) Physical capital: buildings, equipment, and any materials used to produce other goods and services in the future rather than being consumed today. CapitalExpenditures Purchases of productive long-lived assets, in particular, items of property, capital assetan asset used to generate revenues or cost savings CarA loose quantity term sometimes used to describe a the amount of a commodity underlying one Cash CycleThe length of time between a purchase of materials and collection of accounts receivable generated by the sale of the products made from the materials. Cash discountAn incentive offered to purchasers of a firm's product for payment within a specified time Cash Flow Provided or Used from Investing ActivitiesCash receipts and payments involving Channel StuffingShipments of product to distributors who are encouraged to overbuy under Circular FlowIncome payments to factors of production are spent to buy output. The receipts from these sales are used to pay factors of production, creating a circular flow of income. Comparative AdvantageA country has a comparative advantage over another country in the production of good A if to produce a unit of A it forgoes more of the production of good B than would the other country when it produces a unit of good A. Its efficiency in the production of good A relative to its efficiency in the production of good B is greater than is the case for the other country. See also absolute advantage. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |