|Profit Sharing Plan
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Definition of Profit Sharing Plan
Profit Sharing Plan
A retirement plan generally funded by a percentage of company
The ratio of net income to net sales.
A plan by U.S. Treasury Secretary James Baker under which 15 principal middle-income debtor
The ratio of net income before taxes to net sales.
The cumulative book income plus any gain or loss on disposition of the assets on termination of the SAT.
Financial planning conducted by a firm that encompasses preparation of both
An agreement by the parties to a transaction to share the currency risk associated with
A pension plan in which the sponsor agrees to make specified dollar payments to
A pension plan in which the sponsor is responsible only for making specified
Automatic reinvestment of shareholder dividends in more shares of a
A company contributes to a trust fund that buys stock on behalf of
A financial blueprint for the financial future of a firm.
The process of evaluating the investing and financing options available to a firm. It
Arrangement used to finance inventory. A finance company buys the inventory, which is then
Gross profit divided by sales, which is equal to each sales dollar left over after paying
Defined benefit pension plans that are guaranteed by life insurance products. Related: noninsured plans
Long-term financial plan
Financial plan covering two or more years of future operations.
Materials requirement planning
Computer-based systems that plan backward from the production schedule
Money purchase plan
A defined benefit contribution plan in which the participant contributes some part and
Net profit margin
Net income divided by sales; the amount of each sales dollar left over after all expenses
Defined benefit pension plans that are not guaranteed by life insurance products. Related:
Operating profit margin
The ratio of operating margin to net sales.
Overfunded pension plan
A pension plan that has a positive surplus (i.e., assets exceed liabilities).
A fund that is established for the payment of retirement benefits.
Plan for reorganization
A plan for reorganizing a firm during the Chapter 11 bankruptcy process.
The entities that establish pension plans, including private business entities acting for their
Planned amortization class CMO
1) One class of CMO that carries the most stable cash flows and the
Planned capital expenditure program
Capital expenditure program as outlined in the corporate financial plan.
Planned financing program
Program of short-term and long-term financing as outlined in the corporate
The length of time a model projects into the future.
Indicator of profitability. The ratio of earnings available to stockholders to net sales.
The present value of the future cash flows divided by the initial investment. Also called
Ratios that focus on the profitability of the firm. profit margins measure performance
A probability used to determine a "sure" expected value (sometimes called a
Short-term financial plan
A financial plan that covers the coming fiscal year.
Tax-deferred retirement plans
Employer-sponsored and other plans that allow contributions and earnings to
Underfunded pension plan
A pension plan that has a negative surplus (i.e., liabilities exceed assets).
The ability to establish automatic periodic mutual fund redemptions and have proceeds
The profit a company makes before expenses and taxes are taken away.
Whatâ€™s left over after you subtract the cost of goods sold and all your expenses from sales.
The profit made by a division after deducting only those expenses that can be controlled by the
Costâ€“volumeâ€“profit analysis (CVP)
A method for understanding the relationship between revenue, cost and sales volume.
The difference between the price at which goods or services are sold and the cost of sales.
See operating profit.
The 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.
Planning, programming and budgeting system (PPBS)
A method of budgeting in which budgets are allocated to projects or programmes rather than to responsibility centres.
The difference between income and expenses.
Profit and Loss account
A financial statement measuring the profit or loss of a business â€“ income less expenses â€“ for an accounting period.
Profit before interest and taxes (PBIT)
A division or unit of an organization that is responsible for achieving profit targets.
See cash value added.
The amount of profit after deducting interest, taxation and dividends that is retained by the business.
The result of subtracting cost of goods sold from sales. Synonymous with gross margin.
cash flow from operating activities, or cash flow from profit
This equals the cash inflow from sales during the period minus the cash
gross margin, or gross profit
This first-line measure of profit
See earnings before interest and income tax (EBIT).
The general term profit is not precisely defined; it may refer to net
profit and loss statement (P&L statement)
This is an alternative moniker
This concept refers to a separate source of revenue and
Ratios based on sales revenue for a period. A measure of
property, plant, and equipment
This label is generally used in financial
Profit Margin Ratio
A measure of how much profit is earned on each dollar of sales. It
A method for determining the profitability of an investment. It is
cafeteria plan a â€śmenuâ€ť of fringe benefit options that include
cash or nontaxable benefits
analysis a procedure that examines
Employee Stock Ownership Plan (ESOP)
a profit-sharing compensation program in which investments are made in
enterprise resource planning (ERP) system
a packaged software program that allows a company to
manufacturing resource planning (MRP II)
a fully integrated materials requirement planning system that involves
materials requirements planning (MRP)
a computerbased information system that simulates the ordering and
a formulation of the details of implementing
a temporary absorption costing profit caused
the process of creating the goals and objectives for
a responsibility center in which managers are responsible for generating revenues and planning and controlling all expenses
the ratio of income to sales
an incentive payment to employees that is
a visual representation of the amount
profitability index (Pl)
a ratio that compares the present value of net cash flows to the present value of the net investment
pseudo microprofit center
a center for which a surrogate
real microprofit center
a center whose output has a market value
the process of developing a statement of
the process of determining the specific
Manufacturing resource planning (MRP II)
An expansion of the material requirements planning concept, with additional computer-based capabilities in the areas of
Material requirements planning (MRP)
A computer-driven production methodology
A formal agreement between an entity and its employees, whereby the
An entity within a corporation against which both revenues and costs are
Property, plant, and equipment
This item is comprised of all types of fixed assets
Time horizon for a financial plan.
Ratio of net present value to initial investment.
Plant and Equipment
Buildings and machines that firms use to produce output.
A retirement plan set up by an employer, into which employees can
A retirement plan similar to a 401k plan, except that it is designed
A flexible benefits plan authorized under the Internal Revenue
Defined Benefit Plan
A pension plan that pays out a predetermined dollar
Defined Contribution Plan
A qualified retirement plan under which the employer
Educational Assistance Plan
A plan that an employer creates on behalf of its
Employee Stock Ownership Plan (ESOP)
A fund containing company stock and owned by employees, paid for by ongoing contributions by the employer.
Hourly Rate Plan
A method for calculating wages for hourly employees that involves
Nonqualified Retirement Plan
A pension plan that does not follow ERISA and
Piece Rate Plan
A wage calculation method based on the number of units of production
Qualified Retirement Plan
A retirement plan designed to observe all of the requirements
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