Consulting Buzz words.......contd.... May'08
Fixed cost : A cost that does not vary depending on production or sales levels, such as rent, property tax, insurance, or interest expense.
Framework : A structure that helps you organize your thoughts and analyze a case in a logical manner.
Gross sales : Total value of sales, before deducting for customer discounts, allowances, or returns.
Growth phase : A phase of development in which a company experiences rapid earnings growth as it produces new products and expands market share.
Initial Public Offering (IPO) : The firsts sale of stock by a company to the public.
Interest expense : The money spent on the fee charged by a lender to a borrower for the use of borrowed money.
Joint venture : An agreement between firms to work together on a project for mutual benefit.
Market share : The percentage of the total sales of a given type of product or service that are attributable to a given company.
Market-sizing question : A type of case question that is often called a back-of-the-envelope question. This type of question asks you to estimate the size of a specific market. An example : "How many pairs of boxer shorts are sold in the U.S. each year?
Maturity phase : A phase of company development in which earnings continue to grow at the rate of the general economy.
Net sales : Gross sales minus returns, discounts, and allowances.
Niche market : A focused, targetable part of a market.
Overhead : The ongoing administrative expenses of a business, such as rent, utilities, and insurance.
Price-based costing : A pricing strategy in which a product or service is priced according to what the market will bear, or what the consumer is willing to pay.
Profit : The positive gain from a business or operation after subtracting for all expenses.
Proprietary : Something that is used, produced or marketed under exclusive legal right of the inventor or maker ; A drug (that is protected by patent) or copy right against free competition as to name, product, composition, or process of manufacture.
Revenue : Same as sales ; Total Rupees collected for goods and/or services produced.
Venture capital : Funds made available for startup firms and small businesses with exceptional growth potential. Managerial and technical expertise are often provided.
