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