Abbreviations and Terms
Ratio - A calculation done by dividing one number into another.
Rent - Period expense for use of certain items.
Retained earnings - Profit (or loss) made in previous periods and kept in the company, ie. not paid out to shareholders as dividends.
Retailer - Is the Company that sell Product or Service to Consumer.
Return on investment (ROI) - A measure of the amount made on invested capital; equal to the accumulated profit or loss divided by the equity capital invested.
Return on sales (ROS) - A measure of the profitability of the business operations; equal to the earnings before interest and taxes divided by sales revenue.
Revenue – The Financial income from the sales of Product or Service in certain period of time
RSP - Recommended Sales Price; The retail price level that is recommended by Supplier to Retailers... Read More
Sales turnover - Total amount of money from sales of the product.
Safety Stock – Rule 1,5. Safety Stock is extra stock with the purpose to assuring supply security even if sell-out suddenly increase. The Safety Stock is obtained through calculation, taking into account current stock, previous orders, trends and expectations. Example of Safety Stock management is Rule 1,5.
Sell-In is the process of selling of the product from Supplier to the Retailer. This sales does not represent consumption, because consumers still have to buy this product.
Sell-Out is the process of selling of the product from retailer to The Shoppers ( Consumer ).
Shareholder - A person or institution who has invested money in a business in exchange for the ownership of a portion of the company.
Short-term credit - Money borrowed which must be paid back within a short time period; contrasted with loan because no interest is charged.
Short-term liability - A source of financing which needs to be paid back relatively quickly, usually within the next accounting period.
SKU – Stock Keeping Unit, the product, the article.
S.M.A.R.T. Targets – Specific – Measurable – Achievable – Realistic – Time Bound. Abbreviation is standing for words representing basic characteristic of what the balanced target should be.
Stock Out or OOS. 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.
Supplier – The Company who is supplying other Company with Product or Service. Usually they do not sell to final Consumer but to Retailers.
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