Abbreviations and Terms
OOS or Stock Out. Stock Out ( Out Of Stock ) situation is when certain SKU is not available on stock for some period of time. Bad Stock Management, problems with Supply or some other reason causes this.
Opportunity cost - The value of options which were foregone in favour of another; these are included as part of the cost of choosing the particular alternative.
Other liabilities - The sum of a firm's means of financing that are not provided by shareholders but by other debtholders such as Banks and Suppliers.
OTIF is Supply Chain KPI that describes logistic service level... Read More
Owner's equity - The sum of all items representing Shareholders wealth such as Equity Capital, Reserves, Profit/Loss of the accounting period. It is equal to the sum of what the company owns minus what it owes to other debtholders such as Banks, Suppliers.
Pareto Efficiency is occurring when resources are allocated in a way that is impossible to make any company better off without worsening of some other company... Read More
Patents give property rights to inventors for exclusive use of invention for a specific period of time... Read More
Payment of previous purchases - Cash payment for purchases made on credit in previous periods.
Period cost - A cost of running the business operations of a company during a particular period, counted as an expense on the profit & loss statement.
Portfolio – Assortment of products or Services offered by Supplier Company.
Principal - The amount of money borrowed in a loan.
Production cost per unit - Total production costs of the period divided by the number of units produced.
Production costing account - Statement of all the costs going into the production of goods, used to calculate the cost of a single unit.
Price Leadership is established by company that is dominant in market... Read More
Profit – The earning of the business owner after all expenses are being deducted from his revenue.
Profit Story – The "bait" of the Sales presentation. Every Sales Presentation has to have something that will answer to Customer's question: "What is in for me?". This is important element of approach to the customer, because customers are not always ready to accept proposals for suppliers. Profit Story can be based on drawing attention of the Customer by offering him deal that will increase his sales, profit, number of shoppers, image, ...
Profit/loss (period) - The difference between the sales revenue and the total costs of the period.
Profit & loss statement - The basic financial statement which shows the results, or profit performance, achieved by a company over a period of time.
Purchases paid in cash - Goods bought during the period and paid for in cash.
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