Entrepreneurship
Capital lease
A lease in which at the end of the lease period the asset becomes the property of the lessee, possibly with an additional payment
Outsourcing
Contracting with people or companies outside your business to do work for your business
Inventory Valuation
Determination of the amount of assets held by the firm for sale or production
Equipment
Machinery, tools, or material used in the performance of the work of the business
Cost of owning
cost incurred in financing, insuring, taxing, or tracking an asset
Return On Investment (ROI)
A capital budgeting equation used to measure the relationship between initial investment and the profits that are expected to be received from making the investment.
Physical Inventory
A count of all the inventory being held for sale at a specific point in time.
Property
A general term for real estate, but it can also be applied as a legal term for anything owned or possessed
Plant
A general term for the facilities of a business
Best practices
Activities identified by authoritative bodies as examples of optimal ways to get things done in a particular industry, profession, or trade
Outputs
The service or product that is produced for sale
Operating lease
A long-term rental in which ownership of the asset never passes to the person paying for the lease.
Quality
A product's or service's fitness for use, measured as durability, reliability, serviceability, style, ease of use, and dependability
Payback period
The amount of time it takes a business to earn back the funds it paid out to obtain a capital asset
Efficiency
The comparison of productivity ratios to see the extent that an organization has generated more outputs with fewer inputs
Cost of operating
The direct cost incurred in using an asset for the purpose for which it was intended
Supply chain
The line of distribution of a product from its start as materials outside the target firm to its handling in the target firm to its handling by sellers into the hands of customers
Inputs
The materials, labor, and energy put into the production of a good or service
Feedback
The process of communicating within or to the organization about how the outputs worked or were received
Capital budgeting
The process of deciding among various investment opportunities to create a specific spending plan
Operations
The process of transforming materials, labor, and energy into goods or services
Productivity
The ratio measure of how well a firm does in using its inputs to create outputs
Whole of life costs
The sum of all costs of capital assets, including acquisition, ownership, operation, and disposal
Acquisition cost
The total cost of acquiring an asset, including such costs as purchase price, transportation, installation, testing, and calibrating in order to ready it for its first productive use
Replacement Cost
The total cost of replacing an asset with an essentially identical asset.
Cost of disposition
cost incurred in the activities necessary to get rid of an asset