The Boston Matrix, also known as the BCG Matrix, is a tool used in brand marketing and product management to help companies decide what products to keep, develop, or discontinue. It categorizes products based on market growth and market share.
The São Paulo Stock Exchange, known as Bovespa, is the largest and most significant stock exchange in Latin America, located in Brazil. It merged with the Brazilian Mercantile and Futures Exchange (BM&F) in 2008.
Economies of scope refer to the increases in efficiency and potential sales that businesses experience when they produce, distribute, and market a range of products rather than focusing on a single product or type of product.
The forward slash (/) is a character commonly used in both written language and computer programming to separate sections of text, denote fractions, and play various pivotal roles in different computer languages.
A Funds Flow Statement describes how a business has raised and used its funds over a specific period, detailing sources like trading profits, issues of shares, and sales of fixed assets, and uses like trading losses, dividends paid, and repayment of borrowings.
The Manufacturer's Suggested Retail Price (MSRP) is the price that a product's producer recommends it be sold for in retail stores. The MSRP is not mandatory, meaning sellers can choose to sell the product at prices above or below the MSRP, but it is a common practice for ensuring standardized pricing across different retail locations.
Market saturation occurs when a product has become so common in a market that the rate of sales velocity slows down, and there are limited new customer bases available to tap into. It is often achieved by abundant physical presence, prolific advertising, or widespread consumer acceptance.
Revolving credit is a type of credit that does not have a fixed number of payments, allowing the borrower to reborrow money as they repay the principal.
An S Corporation is a type of corporation that meets specific Internal Revenue Service (IRS) requirements allowing the company's income, losses, deductions, and credits to be passed through to shareholders for federal tax purposes.
S.A. refers to a corporate structure commonly used in Spanish-speaking and French-speaking countries. It is equivalent to a corporation (Inc.) in the United States or a public limited company (PLC) in the United Kingdom.
The S&P/Case-Shiller Index, also known as the Case-Shiller/S&P Home Price Index, is a widely respected measure of the U.S. residential housing market. It provides crucial insights into home price trends across major metropolitan regions, thereby influencing both market participants and economic policy makers.
Sabotage commonly refers to deliberate acts aimed at interrupting or destroying productive capabilities. These acts are typically carried out by individuals opposed to a company's management or hostile entities during warfare.
Terms referring to the dismissal or termination of an employee, originally implying that the employee collected their belongings (such as tools) and left the premises.
In taxation, the Safe Harbor Rule provides guidelines established by the IRS for certain transactions, indicating specific parameters a taxpayer can observe to ensure favorable tax treatment or avoid an unfavorable one. An example is a list of parameters that, if followed, will assure sale and leaseback treatment rather than a financing arrangement.
A 'safe haven' refers to an investment that is expected to retain or increase its value during times of market turbulence. These assets are often turned to in order to protect capital when risky investments begin to lose value.
Safe Mode is a diagnostic startup mode in Windows operating systems, designed to help troubleshoot problems with your computer. It is also available in Microsoft Office applications to help resolve issues with problematic add-ins and configurations.
A safe rate refers to an interest rate provided by relatively low-risk investments such as high-grade bonds or well-secured first mortgages.
Safekeeping refers to the storage and protection of assets, valuables, or documents to ensure their security and proper management. It ranges from using a bank safe deposit box to utilizing services from financial institutions like banks and brokerage firms.
A governmental organization dedicated to reviewing and encouraging safety practices within both public and private sector organizations, often functioning as a Safety Committee in labor and management relations.
The safety margin is the excess of actual sales over break-even sales, providing a buffer that measures how much sales can drop before incurring a loss.
Sagacity refers to the characteristics of intelligence, shrewdness, or wisdom; soundness of judgment. It emphasizes the ability to make good decisions, often with keen perception and foresight.
A range of business software packages provided by The Sage Group Ltd. As well as accounting, book-keeping, and payroll functions, these typically include applications for financial control, operations management, project costing, and customer relationship management.
The Salariat refers to the working class, encompassing those individuals who engage in employment or labor to earn a wage or salary.
Regular compensation received by an employee as a condition of employment. Salaries comprise basic wage, performance-based pay, and indirect fringe benefit compensation, typically computed on an annual basis.
A salary continuation plan is an arrangement often funded by life insurance to continue an employee's salary in the form of payments to a beneficiary for a certain period after the employee's death. The employer may act as the beneficiary, collecting the death benefit and making payments to the employee's designated beneficiary.
A salary reduction plan allows employees to have a certain percentage of their gross salary withheld and invested in options such as stocks, bonds, or money market funds.
A sale represents an exchange of goods or services for money. The concept and details of a sale vary across fields such as finance, law, marketing, and securities trading.
A sale and leaseback transaction involves the owner of an asset selling it and then immediately leasing it back from the buyer. This allows the original owner to continue using the asset while freeing up capital.
An in-depth overview of Sale and Repurchase Agreement (often referred to as repurchase agreement or repo) including definition, examples, FAQs, related terms, resources, and suggested readings.
A sale or exchange refers to the disposition of property in a value-for-value transaction, as opposed to a disposition by gift, contribution, or similar means.
Sale or return is a terms of trade in which the seller agrees to take back from the buyer any goods that have not been sold within a specified period. This strategy is commonly used in retail to reduce the risk to retailers of carrying unsold inventory.
A sales account is used to record both cash and credit sales transactions that take place as a result of the sale of goods or services.
A Sales Analyst operates within an accounting department and is responsible for tracking sales by region, product, or account. They ensure proper accounting and make recommendations to enhance profitability.
Sales Area Marketing, Inc. (SAMI) is a specialized entity focused on region-specific marketing efforts aimed at boosting sales through targeted promotional strategies and customer engagement techniques. Their approach is rooted in understanding local market dynamics to craft campaigns that resonate with geographically distinct consumer bases.
A sales budget is a financial plan that outlines projected sales volumes and revenues for a specific budget period. It serves as a critical component of the budgetary control system and aids in strategic planning and performance evaluation.
A sales charge is a fee paid on purchasing an investment or product, typically associated with mutual funds, to compensate brokers or financial advisors for their service.
The Sales Comparison Approach is one of the three primary appraisal methodologies used to value property by comparing it to similar recently sold properties. It's also known as the Market Comparison Approach.
A sales contract is a formal agreement between a buyer and a seller, outlining the terms and conditions of a sale transaction.
A budget that determines the expenditure the sales function is allowed to incur in achieving the sales volumes and sales revenue budgets during a budget period.
A sales credit note is a document issued by the seller to a customer to cancel, or partly cancel, an invoiced charge. It serves as an acknowledgment of the adjustment and facilitates a refund or a credit towards future purchases.
A Sales Day Book, also known as a Sales Journal or Sold Day Book, is an essential accounting record used to document invoices issued to customers for goods or services provided by an organization.
A Sales Day Book is a specialized subsidiary ledger used by businesses to record all the credit sales transactions before they are posted to the general ledger. This helps businesses maintain a detailed record of their sales and enhances the accuracy of their financial reporting.
A sales discount, also known as a cash discount, is a reduction in the price of a product or service that is offered by the seller to buyers as an incentive for prompt payment.
Sales Effectiveness Test refers to methodologies and metrics used to evaluate the ability of advertising campaigns, promotions, or communication mediums to drive product sales.
A sales forecast is an estimate of future sales volumes and revenue. It is usually based on past trends and considers current and future directions, such as government regulations, economic forecasts, and industry conditions.
The sales function is the section of an organization responsible for selling its products and services. It plays a critical role in driving revenue and maintaining business growth by managing customer relationships, identifying sales opportunities, and closing deals.
A remuneration offered to a salesperson for exceeding some predetermined sales goal. Sales incentives are often provided by manufacturers as part of a promotion for the sale of their goods. The incentive may be in cash, or it may take the form of a special prize, such as a trip to an exotic or exciting vacation place.
A sales invoice is a document sent by the seller of goods or services to the buyer, detailing the amounts due, discounts available, payment dates, and such administrative details as account numbers and credit limits. It is a crucial component in business transactions and accounting.
The Sales Journal, also known as the Sales Day Book, is a specialized accounting ledger used to record credit sales transactions. It helps businesses maintain accurate and organized financial records, facilitating the tracking and analysis of accounts receivable.
The sales ledger, also known as the debtors' ledger, is an accounting record that tracks the sales transactions and amounts owed by customers.
The Sales Ledger Control Account, also known as the Debtors' Ledger Control Account, is a summary account in the general ledger that consolidates all individual debtor balances from the sales ledger.
Sales literature is written material designed to help sell a product or service. It includes brochures, catalogs, flyers, and other written content used in marketing to inform and persuade potential customers.
A sales load, also referred to as a sales charge, is a commission or fee paid to a broker or agent when an investor buys or sells shares in a mutual fund.
The Sales Margin Mix Variance (Sales Mix Profit Variance) in standard costing measures the financial impact of changes in the actual mix of sales compared to the standard or budgeted sales mix. It isolates the portion of the sales volume variance attributable to variations in the product mix.
In standard costing, the sales margin price variance arises due to the difference between actual sales revenue and the budgeted or standard selling prices for the actual sales quantities achieved. This variance can be either adverse or favorable.
Sales Margin Quantity Variance is an important concept within standard costing that measures the difference between the budgeted sales quantity and the actual sales quantity, valued at the standard profit margin per product.
Sales Margin Volume Variance, often referred to as Sales Volume Variance, in standard costing, measures the adverse or favorable variance arising from the difference between the actual number of units sold and those budgeted, valued at the standard profit margin.
Sales mix represents the relative proportions of individual products that make up the total units sold within a company, offering insights into profitability and strategic planning.
An essential concept in managerial accounting, Sales Mix Profit Variance looks at the difference in actual profit compared to budgeted profit, considering the sales mix. It helps businesses understand the impact of variations in product sales mix on overall profitability.
A sales office is a manufacturer-owned office that usually has no inventory and is primarily intended to increase customer sales.
Sales price refers to the amount of money required to be paid or previously paid for property or a product. It is a crucial concept in business transactions, determining the financial outcome of sales activities.
Sales promotion encompasses activities, materials, devices, and techniques used to supplement advertising and marketing efforts, coordinating them with personal selling activities to boost product or service sales.
Sales returns refer to goods that customers have returned to a business, usually due to defects or dissatisfaction. This can impact a company's revenue and inventory management.
Sales Returns and Allowances is an account used to accumulate price reductions given to customers due to goods being returned or merchandise being defective and not suited to customers' needs.
The Sales Returns Book, also known as the Returns Inwards Book, is a specialized ledger maintained by businesses to record the return of goods sold to customers. It helps track and manage returned inventory, ensuring accurate financial accounting and inventory control.
Sales revenue is the income generated from the sale of goods or services by a company. It is a key determinant of a company's financial health, and it is crucial for assessing growth potential and earning assessments.
Sales tax is a consumption tax imposed by governments on the sale of goods and services, typically calculated as a percentage of the selling price. It is paid by the consumer at the point of purchase and collected by the retailer, who then remits it to the government.
Sales values represent the prices charged for items when they are sold. Additionally, in accounting, they serve as a method of apportioning joint costs between joint products in process costing models.
Sales volume refers to the number of units sold of each product. It is a key metric in evaluating the performance of a company’s products and its overall market position.
Sales volume variance is the difference between the budgeted sales quantity and the actual sales quantity, valued at the standard profit per unit or standard contribution margin per unit. It measures the impact of sales volume fluctuation on the financial performance of a business.
A lease in which the lessor meets the criteria for a capital lease and additionally satisfies criteria regarding collectibility and predictability of costs.
A salesperson is an individual whose primary responsibility is selling products, services, or investments. Salespersons in various industries, such as real estate, insurance, and securities, are often required to hold licenses.
The net residual value of an asset at the end of its useful life, when it is no longer suitable for its original use. Fixed assets, inventory, or waste arising from a production process can all have a salvage value.
Salvage value, also known as scrap value, is the estimated residual amount that an asset is expected to realize when it is sold at the end of its useful life.
A sample buyer is an individual who purchases or obtains a product sample, often at a special introductory rate or for free, to evaluate its quality or efficacy before committing to a full-sized purchase.
Sampling is a process in which a small group of items, known as a sample, is selected from a larger group (population) to represent the characteristics of the larger group. It is widely used in auditing, market research, and quality control.
Sampling is a fundamental aspect of fields like marketing research and sales promotion, facilitating the study and testing of small groups to draw conclusions or stimulate usage in larger populations cost-effectively.
A Samurai bond is a bond issued in Japan by a non-Japanese entity, denominated in Japanese yen. It enables foreign issuers to access the Japanese capital market.
A committee led by Sir Francis Sandilands, established in 1975 by the UK Government to explore the appropriate methodologies for accounting the effects of inflation in company financial statements.
A sandwich lease is a lease held by a lessee who becomes a lessor by subletting the leased property. Typically, the sandwich leaseholder is neither the owner nor the end-user of the property.
The Sarbanes-Oxley Act of 2002, often abbreviated as SOX, is a United States federal law that mandates various regulations to improve the accuracy and reliability of corporate disclosures and to protect investors against fraudulent financial practices.
Legislation introduced in response to major corporate financial scandals to enhance corporate transparency and accountability.
The Sarbanes-Oxley Act of 2002, often referred to as Sarbox or SOX, is a landmark piece of U.S. legislation designed to enhance corporate governance, financial transparency, and auditing standards in response to a series of high-profile corporate scandals, including the infamous Enron scandal.
An abbreviation with differing definitions in the United Kingdom and the United States, crucial for understanding standardized auditing practices.
Satellite communication refers to the use of orbital satellites to transmit voice, data, video, and graphics from one location to another.
Satisfaction of Debt refers to the release and discharge of an obligation where the performance is executed to fulfill a debt.
An instrument for recording and acknowledging final payment of a mortgage loan. The lender acknowledges that the debt has been satisfied.
The Satyam scandal was an accounting scandal involving the Indian computer services company Satyam, where profits and asset values were artificially inflated through fraudulent activities, primarily by creating thousands of false invoices over a period of five years.
The term 'save' refers to the act of setting aside resources for future use, particularly in the context of finances and data storage.
A program command used to save a file under a different name, in a different folder, or in a different format. The 'Save As' dialog is typically presented automatically for the first save of a newly created file, providing the opportunity to name the file.
A popular savings method employed by organizations to motivate employee savings and investments in company shares, often accompanied by tax privileges.
A Save-As-You-Earn (SAYE) scheme is an employee savings plan common in the United Kingdom that encourages savings and offers employees the opportunity to acquire company shares through payroll deductions.
Savings refer to the amount of disposable income that is not spent on consumption. The percentage of gross income that is saved defines the savings rate, a key indicator of economic health.
A bank or building-society account designed for the investment of personal savings. These accounts typically offer higher interest rates than deposit and current accounts. Some accounts provide instant access to funds, while others require notice to be given, typically 30, 60, or 90 days.
Savings and Loan Association (S&L) is a type of financial institution that specializes in accepting savings deposits and making mortgage loans.
A Savings and Loan Association (S&L), also known as a building and loan association, is a financial institution similar to a savings bank, with a historical focus on providing home loans. In recent years, S&Ls have expanded their services to include a wider variety of loans.
A US financial institution that specializes in accepting savings deposits and making mortgage loans. They offer loans with a fixed rate of interest and have greater investment flexibility compared to UK building societies.
A type of bank, prevalent on the East Coast and in the Midwest, primarily offering time-savings accounts. These banks are typically owned by their depositors, who receive dividends in the form of interest on their accounts. Their functions are similar to those of Savings and Loan Associations (S&Ls).
A U.S. government bond issued in denominations ranging from $50 to $10,000, traditionally issued at a discount and redeemed at face value upon maturity.
The savings element in cash value life insurance represents the portion of the policy that accumulates value over time, which policyholders can potentially access through withdrawals or surrenders. It functions both as a savings and investment vehicle.
