The state of being able to generate creative and valuable output efficiently. Often associated with high levels of creativity, efficiency, and often substantial yields of work in a given period.
Productivity measures the relationship between the quantity and quality of units produced and the labor per unit of time.
Productivity variance measures the differences between expected and actual output levels and efficiency, helping businesses refine production processes.
A Professional Association refers to a formal organization of professionals within a specific industry or profession, typically designed to provide networking opportunities, continuing education, and policy advocacy. This organization is crucial for maintaining standards, ethics, and ongoing professional development within various fields such as law, medicine, accounting, and engineering.
A Professional Association (P.A.) is a legal entity that allows professionals to practice within the framework of a designated organizational structure while benefiting from certain protections and tax advantages.
A professional corporation (PC) is a type of corporation formed for the purpose of engaging in a learned profession, such as law, medicine, or architecture, where traditionally such fields required personal qualifications that corporations lacked.
A Professional Employer Organization (PEO) provides comprehensive HR solutions for small and mid-sized businesses, including payroll, benefits, regulatory compliance, and HR management.
A Professional Employer Organization (PEO) is a staffing firm that provides employees to another company through employee leasing or staff leasing. In exchange for a fee from the client company, the PEO manages various HR responsibilities, including wage payments, tax submissions, and employee benefits.
Understanding the distinctions between professional income and trade income, especially in the context of taxation, essential for accurate financial reporting.
Professional Indemnity Insurance (PII) is a type of insurance that provides coverage for professionals and businesses to protect against claims for negligence, errors, and omissions in the service or advice they provide to clients.
Professional Indemnity Insurance (PII) is a form of third-party insurance that covers professionals, such as accountants or auditors, against compensatory claims arising from negligence or defective advice.
Professional Liability Insurance provides specialized coverage for professionals against claims arising from errors, omissions, or negligent acts in the course of their professional activities. It is essential for individuals with specialized expertise as basic liability policies do not cover professional liabilities.
The Professional Oversight Board (POB) is a UK regulatory body responsible for overseeing the regulation of auditors, accountants, actuaries, and providing independent oversight for the accounting, auditing, and actuarial professions.
The Professional Oversight Board (POB) is an operating body of the Financial Reporting Council (FRC) responsible for providing independent oversight of the auditing and accounting professions, aiming to uphold public confidence in the governance of listed and other companies.
A Professional Valuation is an assessment of the value of an asset by a professionally qualified individual, utilized in a balance sheet or prospectus of a company.
A Profit and Loss Account is a financial statement that summarizes the revenues, costs, and expenses incurred during a specific period, leading to a company's net profit or loss.
Detailed examination of the various formats for profit and loss accounts as prescribed by the Companies Act, including required disclosures and considerations for international comparability.
A profit and loss account reserve is a reserve that contains the balance of retained earnings to carry forward. It is fully distributable and shown as part of shareholders' reserves on the balance sheet.
A Profit and Loss Appropriation Account is a financial statement showing how the net profits or losses have been dealt with in a given period.
A financial statement that summarizes the revenues, costs, and expenses incurred during a specific period of time, usually a fiscal quarter or year.
A Profit and Loss Statement (P&L) summarizes the revenues, costs, and expenses incurred by a company during an accounting period, offering a comprehensive view of its financial performance. Also known as an Income Statement, operating statement, statement of profit and loss, or income and expense statement.
A profit center is a segment of a business organization that is responsible for generating its own revenue and profitability, often operating autonomously within a larger entity.
A section or area of an organization to which revenue can be traced, together with the appropriate costs, so that profits can be ascribed to that area. Profit centres may be divisions, subsidiaries, or departments.
Profit margin is a measure of profitability that calculates how much of every dollar earned by a company winds up as profit. It is critical for assessing the efficiency and performance of a company.
Profit margin measures the profitability of a single transaction or set of transactions by calculating the excess of sales revenue over the costs incurred in providing the goods or services sold. It is also a measure of the surplus of net assets over a period, taking into account capital injections or withdrawals by proprietors.
Profit motive refers to the desire to earn a favorable financial return on a business venture. Without a profit motive, tax losses from an activity may be considered a hobby loss, which are only deductible to the extent of income.
An expression that indicates increasing difficulty in maintaining the same amount or rate of profit due to reduced sales, lower prices, rising production costs, financing costs, administrative expenses, or taxes.
The profit system is a fundamental element of the capitalist economic system, where the pursuit of profit drives entrepreneurial activities and shapes market production.
Profit taking is the action by short-term securities or commodities traders to cash in on gains earned on a sharp market rise. It can result in temporary downward pressure on prices.
In standard costing, the variance consisting of the difference between the standard operating profit budgeted to be made on the items sold and the actual profits made. The analysis of the profit variance into its constituent sales, direct labor, direct material, and overhead variances provides the management of the organization with information regarding the source of the gains and losses compared to the predetermined standard.
A profit warning is a declaration by a company indicating that its future profits are predicted to be substantially lower than previous forecasts.
Profit-related pay (PRP) refers to the situation where employee compensation is directly linked to the profitability of the employer. This approach aims to boost employee motivation, commitment, and performance by aligning their interests with the company’s commercial success.
Profit-Related Pay (PRP) is an employee compensation plan where the amount paid to an employee is tied to the company's profitability. It aims to align the interests of employees and shareholders by incentivizing employees to work towards increasing company profits.
A profit-sharing plan is an agreement between a corporation and its employees which allows employees to share in the company's profits. Contributions are made annually by the company to an account for each employee, accumulating tax deferred until retirement or departure. Employees may be able to borrow against these funds for major expenditures.
The ratio in which the profits or losses of a business are shared among its partners. For a partnership, the profit-sharing ratios will be defined in the partnership agreement, usually reflecting the amount, given as a percentage of the total profits, attributable to each partner.
The Profit-Sharing Ratio (PSR) is a financial metric used to define how profits or losses are distributed among partners or stakeholders in a business or investment.
A profit-sharing scheme is a program that provides employees with a share in the profits of the company they work for, often by means of share ownership.
A profit-taking strategy is a method employed by investors and traders to sell an asset and secure profits after it has achieved a predefined target price.
A PV chart graphically displays the relationship between profits, losses, and different levels of business activity, highlighting the breakeven point and fixed costs.
A Profit-Volume (PV) Chart, also known as a Profit-Volume graph, visually represents the relationship between a company's profits and its sales volume. It provides valuable insights into the break-even point, the margin of safety, and the dynamics between fixed and variable costs, aiding in decision-making and strategic planning.
A metric used to measure the relationship between profit and sales volume, commonly referred to as the Contribution Margin Ratio, which indicates how much revenue from sales contributes to covering the fixed costs and generating profit.
Profitability and profitability ratios are essential metrics used to measure the efficiency and success of a business in generating earnings relative to various financial aspects like sales, assets, and equity.
The Profitability Index is a financial metric used to evaluate the profitability of an investment or project, calculated by dividing the present value of future expected cash flows by the initial investment.
A financial metric used in discounted cash flow analysis to rank potential projects based on their profitability.
Financial metrics used to measure a company's ability to generate profit relative to other key variables, such as sales, assets, or equity.
A profiteer is an individual or organization that makes excessive profits, often to the detriment of others. Profiteering involves exploiting situations, typically during emergencies or shortages, to gain more than fair market benefit.
Insurance coverage protecting future profits or commissions from a manufacturer's inventory loss due to insured perils like fire.
Profits available for distribution refer to the earnings or surplus that a company can allocate to its shareholders in the form of dividends or other forms of payouts.
An estimate or 'sample invoice' provided by a seller to a buyer in certain circumstances, serving as a preliminary bill of sale before the details are finalized, often used in international trade and shipments.
A multi-faceted term with different meanings across various domains, including organized events and computer instructions.
Program budgeting is a method of budgeting expenditures to meet programmatic objectives rather than using a line-item basis. It focuses on specific performance objectives and systematically formulates costs for all related functions, providing a clear link between expenditures and outcomes.
A planning and control technique to minimize interruptions and/or delays in a process with interrelated functions. PERT is used to assist in reducing the time required for completion of a project.
Program trading refers to the institutional buying or selling of all stocks in a program or index on which options and/or futures are traded, often resulting in significant stock market fluctuations.
A key on a computer keyboard whose function depends on the software being run. PF keys can often be redefined to perform complex functions or combinations of other key sequences, enhancing user productivity.
Programme Evaluation and Review Technique (PERT) is a project management tool used to plan and coordinate complex tasks within a project. It helps in identifying the minimum time required to complete a project by analyzing the tasks involved and their sequences.
A quantitative technique used in project management to plan and control large projects by analyzing the time required to complete each project task and identifying the minimum time needed for project completion.
A programmer is a professional who writes and tests the code that allows computer applications and software programs to function as intended. They receive directions from systems analysts to create the detailed instructions that enable computers to perform specific tasks.
A progress payment is a payment made to a contractor based on the stage of work completed at a specified date, as certified by an agreed authority. It is commonly used in long-term contracts such as civil engineering, shipbuilding, or large items of plant and machinery.
Payments made to a contractor incrementally as work is performed; in construction, these are loan payments issued to the builder as each stage of the building is completed.
A Progressive Tax is a tax mechanism where the tax rate increases as the tax base increases. This kind of tax structure aims to distribute the tax burden more equitably based on the taxpayer's ability to pay.
Project Management (PM) is an organizational management system that assigns employees to specific project teams when special projects are contracted and then reassigns them back to the organization when the project is completed. PM also involves coordinating project activities with organizational divisions and departments to achieve objectives.
Software designed to facilitate and integrate key tasks in the management of a large project. These typically include scheduling, critical-path analysis, budget control, and administrative support. A good system is integrated and dynamic, allowing assessment of total knock-on effects of any departures from the original plan in key areas such as budgeting and scheduling as the project evolves.
The actuarial present value as of a specific date of all benefits attributed by the pension benefit formula to employee service performed before that date. It is measured using assumptions as to future compensation levels if the pension benefit formula is based on those future salary levels (e.g., pay-related, final-pay).
A projected financial statement, often known as a pro forma financial statement, is a financial report that outlines estimates of future revenues, expenses, and profits based on historical data, expected market trends, and planned business activities.
A projection is an estimate of future performance made by economists, corporate planners, and credit and securities analysts to anticipate economic and financial conditions.
The Projection Period refers to the time duration used for estimating future cash flows and the resale proceeds from a proposed investment. Commonly used in financial analyses, it helps in forecasting and valuing investments, especially in real estate.
The working class or those who must support themselves through physical labor; in Marxist economic theory, the proletariat are exploited by the owners of capital, who benefit from the value produced by labor.
A promissory note is a negotiable instrument that contains a written promise to pay a specified sum of money to a named person, their order, or the bearer at a predetermined future date. It must be unconditional, signed by the maker, and delivered to the payee or bearer.
Promotion refers to the process of advancing an employee to a higher job position with greater pay and responsibilities or the set of marketing activities aimed at increasing brand visibility, sales, and customer engagement.
A promotion mix is a blend of various promotional methods aimed at achieving marketing objectives, including advertising, personal selling, publicity, and sales promotion.
A promotional allowance is a reduction of the wholesale price as an incentive to retailers or middlemen. It compensates the retailer for expenditures made promoting the product.
In computing, a prompt is a symbol or series of characters displayed on a computer screen to notify the user that the system is ready to accept input commands. Prompts can vary depending on the operating system and specific program in use.
A legal document filed with a court by a creditor to verify their position as a holder of debt, asserting the right to receive a payout from a debtor's bankruptcy estate.
Proof of Loss is documentation required by an insurance company from a policyowner to validate a claim, detailing the nature and extent of the loss. This ensures proper payment of benefits according to the policy.
Accounting records that are sufficient to show and explain an organization's transactions, enabling a company to disclose its financial position accurately and comply with statutory regulations.
Property refers to every valuable right or interest that is subject to ownership, has an exchangeable value, or adds to one's wealth or estate. It includes both physical objects and intangible rights, covering a broad range of items and interests that can be owned, used, and transferred.
Coverage that protects an insured party in the event that their negligent acts or omissions result in damage or destruction to another's property.
Property Depreciation Insurance coverage ensures replacement of damaged or destroyed property on a new replacement cost basis without any deductions for depreciation. This coverage is equivalent to replacement cost property insurance.
Property insurance is a type of insurance policy that provides financial reimbursement to the owner or renter of a structure and its contents in case of damage or theft. It also provides liability coverage against accidents that may occur on the property.
A Property Investment Certificate (PINC) is a financial tool or instrument that represents an individual's or entity's ownership in real estate investments, allowing for diversified exposure to property markets.
A certificate that gives the bearer a share in the value of a particular property and a share of the income from it. PINCs can be bought and sold.
A property line represents the officially recorded boundary of a plot of land, which legally defines the perimeter of an individual's or entity's ownership.
Property management involves the operation of real estate as a business, including activities such as rental, rent collection, maintenance, and numerous other tasks related to the ownership and oversight of properties.
A Property Report is a mandatory document required by the Interstate Land Sale Full Disclosure Act for the sale of subdivisions containing 50 lots or more, unless exempt. This report is filed with HUD's Office of Interstate Land Sales Registration.
Property rights refer to the legal rights to the ownership, use, and transfer of land, capital, and other goods. They are an essential element of the capitalist system and form the foundation for private ownership and profitability.
A tax based on the value of property owned by a taxpayer. In the UK, council tax and business rates are charged based on the property’s value, defined by a series of value bands which depend on the region.
Property, Plant, and Equipment (PP&E) are tangible fixed assets used in operating a business. This category includes land, buildings, machinery, fixtures, and other types of equipment that are expected to be used over multiple accounting periods.
Proportional consolidation is a method used in group accounts for subsidiaries that are not fully owned, including a proportionate share of each category of a joint venture in revenues, expenditures, assets, and liabilities line by line. This method contrasts with the equity method and has been a topic of much debate.
A typeface characteristic where characters have different widths, enhancing readability compared to fixed-pitch typefaces.
A proportional tax, also known as a flat tax, imposes the same percentage rate of taxation on everyone, regardless of income or wealth level.
Proportional taxation is a tax system where the tax rate remains constant regardless of the amount of income earned. It applies a uniform tax rate to all individuals, which means that both the wealthy and poor pay the same percentage of their income in taxes.
A proposed dividend is a dividend that has been recommended by the directors of a company but has not yet been approved by the shareholders or paid to the shareholders.
Proprietary refers to anything that is owned by a particular person or entity. In the realm of trade secrets law, proprietary information is protected information or knowledge where ownership rights are established and are typically safeguarded by contractual agreements, rather than through patents.
A proprietary company, commonly marked with the suffix 'Pty' or 'Pty Ltd,' is a type of privately held business entity predominantly associated with Australia. Such companies have restrictions on the transferability of shares and are limited to a maximum of 50 shareholders.
Proprietary interest refers to any right in relation to a chattel that enables a person to retain its possession indefinitely or for a period of time.
A proprietary lease is a type of lease agreement used in cooperative housing that grants a shareholder the right to occupy a specific apartment unit within the cooperative building.
A proprietary operating system is specifically designed to run on only one type of computer, limiting the ability of software applications to run on other systems and also constraining the market for any application software exclusive to that OS.
The proprietary view in accounting emphasizes the rights and interests of shareholders rather than viewing the enterprise as a separate entity.
A proprietor is an owner of a property or business. In the context of a company, the owners are referred to as shareholders.
An unincorporated business owned by a single person, where the individual proprietor has rights to all profits and responsibilities for all liabilities. The income is reported on Schedule C of Form 1040 and is subject to self-employment tax.
