Key Terms S - W Flashcards
Sub-contracting (outsourcing)
Delegation, by one firm, of a portion of production processes, under contract, to another firm
Supplier
An individual, business or organisation which provides goods or services to a customer or consumer
Total quality management (TQM)
An attitude to quality where the aims are zero defects and total customer satisfaction
Training
The provision of work related education or skills development
Unit costs
The average production cost per unit
Unique selling point (USP)
A feature of a product or service that differentiates of amongst the competition
Variance
The difference between the budgeted amounts and the actual amounts
Waste
Raw materials which are not retained in the production process
Workforce role
The tasks involved in a particular level or grade of job
Workload
The amount of work assigned to a particular worker over a period of time
Stocks (inventory)
Raw materials, works-in-progress and finished goods held for resale
Distribution channel
Refers to how a business gets it’s product to the customer, with or without the use of intermediaries
Price leader
A market leader business whose price changes are followed by rivals
Personal selling
Face-to-face selling in which a seller attempts to persuade a buyer to make a purchase
Working Capital Cycle (WCC)
The amount of time it takes to turn the net current assets and current liabilities into cash
Cash conversion cycle (CCC)
The length of time it takes for a company to convert resource inputs into cash flows
Product rationalisation
The process of reducing the amount of products sold in order to invest more in the products that make the most profit
Lean production
A systematic method for the elimination of waste within a manufacturing process
Fringe benefits
An extra benefit supplementing an employee’s money wage or salary
Management by exception
The practice of examining the financial and operational results of a business, and only bringing issues to the attention of management if results represent substantial differences from the budgeted or expected amount
Mystery Shopping
A tool used externally by market research companies to measure the quality of service
