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Financial Terms | |
Profit Sharing Plan |
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 Profit Sharing PlanProfit Sharing PlanA retirement plan generally funded by a percentage of company
Related Terms:401k PlanA retirement plan set up by an employer, into which employees can 403b PlanA retirement plan similar to a 401k plan, except that it is designed After-tax profit marginThe ratio of net income to net sales. Aggregate planningA budgeting process using summary-level information to Baker PlanA plan by U.S. Treasury Secretary James Baker under which 15 principal middle-income debtor Before-tax profit marginThe ratio of net income before taxes to net sales. Book profitThe cumulative book income plus any gain or loss on disposition of the assets on termination of the SAT. ![]() Cafeteria PlanA flexible benefits plan authorized under the Internal Revenue cafeteria plan a “menu” of fringe benefit options that includecash or nontaxable benefits Canada Pension Plan (CPP)A plan that provides retirement and long term disability income benefits to residents of Canadian provinces (excluding Quebec). cash flow from operating activities, or cash flow from profitThis equals the cash inflow from sales during the period minus the cash Controllable profitThe profit made by a division after deducting only those expenses that can be controlled by the Corporate financial planningFinancial planning conducted by a firm that encompasses preparation of both Cost–volume–profit analysis (CVP)A method for understanding the relationship between revenue, cost and sales volume. cost-volume-profit (CVP)analysis a procedure that examines Currency risk sharingAn agreement by the parties to a transaction to share the currency risk associated with ![]() Defined benefit planA pension plan in which the sponsor agrees to make specified dollar payments to Defined Benefit PlanA pension plan that pays out a predetermined dollar Defined contribution planA pension plan in which the sponsor is responsible only for making specified Defined Contribution PlanA qualified retirement plan under which the employer Dividend reinvestment plan (DRP)Automatic reinvestment of shareholder dividends in more shares of a Educational Assistance PlanA plan that an employer creates on behalf of its Employee stock ownership plan (ESOP)A company contributes to a trust fund that buys stock on behalf of Employee Stock Ownership Plan (ESOP)a profit-sharing compensation program in which investments are made in Employee Stock Ownership Plan (ESOP)A fund containing company stock and owned by employees, paid for by ongoing contributions by the employer. enterprise resource planning (ERP) systema packaged software program that allows a company to Enterprise resource planning systemA computer system used to manage all company ![]() Estate PlanningAn insurance program designed to provide funds for insured's dependents upon death of the insured, and to also conserve, as much as possible, the personal assets that the insured wants to bequeath to heirs. Financial planA financial blueprint for the financial future of a firm. Financial planningThe process of evaluating the investing and financing options available to a firm. It Floor planningArrangement used to finance inventory. A finance company buys the inventory, which is then gross margin, or gross profitThis first-line measure of profit GROSS PROFITThe profit a company makes before expenses and taxes are taken away. Gross profitThe difference between the price at which goods or services are sold and the cost of sales. Gross profitThe result of subtracting cost of goods sold from sales. Synonymous with gross margin. Gross ProfitRevenue less cost of goods sold. Gross profit marginGross profit divided by sales, which is equal to each sales dollar left over after paying Gross Profit MarginGross profit divided by revenue. Hourly Rate PlanA method for calculating wages for hourly employees that involves Insured plansDefined benefit pension plans that are guaranteed by life insurance products. Related: noninsured plans Insured Retirement PlanThis is a recently coined phrase describing the concept of using Universal Life Insurance to tax shelter earnings which can be used to generate tax-free income in retirement. The concept has been described by some as "the most effective tax-neutralization strategy that exists in Canada today." Interplant transferThe movement of inventory from one company location to Long-term financial planFinancial plan covering two or more years of future operations. Manufacturing resource planningAn integrated, computerized system for planning manufacturing resource planning (MRP II)a fully integrated materials requirement planning system that involves Manufacturing resource planning (MRP II)An expansion of the material requirements planning concept, with additional computer-based capabilities in the areas of Material requirements planningA computerized system used to calculate material Material requirements planning (MRP)A computer-driven production methodology Materials requirement planningComputer-based systems that plan backward from the production schedule materials requirements planning (MRP)a computerbased information system that simulates the ordering and Money purchase planA defined benefit contribution plan in which the participant contributes some part and Net profitSee operating profit. Net profit marginNet income divided by sales; the amount of each sales dollar left over after all expenses Non-insured plansDefined benefit pension plans that are not guaranteed by life insurance products. Related: Nonqualified Retirement PlanA pension plan that does not follow ERISA and Operating profitThe profit made by the business for an accounting period, equal to gross profit less selling, finance, administration etc. expenses, but before deducting interest or taxation. operating profitSee earnings before interest and income tax (EBIT). Operating profit marginThe ratio of operating margin to net sales. operational plana formulation of the details of implementing Overfunded pension planA pension plan that has a positive surplus (i.e., assets exceed liabilities). Pension planA fund that is established for the payment of retirement benefits. Pension planA formal agreement between an entity and its employees, whereby the phantom profita temporary absorption costing profit caused Piece Rate PlanA wage calculation method based on the number of units of production Plan for reorganizationA plan for reorganizing a firm during the Chapter 11 bankruptcy process. Plan sponsorsThe entities that establish pension plans, including private business entities acting for their Planned amortization class CMO1) One class of CMO that carries the most stable cash flows and the Planned capital expenditure programCapital expenditure program as outlined in the corporate financial plan. Planned financing programProgram of short-term and long-term financing as outlined in the corporate planningthe process of creating the goals and objectives for Planning horizonThe length of time a model projects into the future. planning horizonTime horizon for a financial plan. Planning, programming and budgeting system (PPBS)A method of budgeting in which budgets are allocated to projects or programmes rather than to responsibility centres. Plant and EquipmentBuildings and machines that firms use to produce output. PROFITWhat’s left over after you subtract the cost of goods sold and all your expenses from sales. ProfitThe difference between income and expenses. profitThe general term profit is not precisely defined; it may refer to net Profit and Loss accountA financial statement measuring the profit or loss of a business – income less expenses – for an accounting period. profit and loss statement (P&L statement)This is an alternative moniker Profit before interest and taxes (PBIT)See EBIT. profit centera responsibility center in which managers are responsible for generating revenues and planning and controlling all expenses Profit centerAn entity within a corporation against which both revenues and costs are Profit centreA division or unit of an organization that is responsible for achieving profit targets. Profit marginIndicator of profitability. The ratio of earnings available to stockholders to net sales. profit marginthe ratio of income to sales Profit Margin RatioA measure of how much profit is earned on each dollar of sales. It profit moduleThis concept refers to a separate source of revenue and profit ratiosRatios based on sales revenue for a period. A measure of profit sharingan incentive payment to employees that is profit-volume grapha visual representation of the amount Profitability indexThe present value of the future cash flows divided by the initial investment. Also called Profitability indexSee cash value added. Profitability IndexA method for determining the profitability of an investment. It is profitability indexRatio of net present value to initial investment. profitability index (Pl)a ratio that compares the present value of net cash flows to the present value of the net investment Profitability ratiosRatios that focus on the profitability of the firm. profit margins measure performance property, plant, and equipmentThis label is generally used in financial Property, plant, and equipmentThis item is comprised of all types of fixed assets pseudo microprofit centera center for which a surrogate Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |