April, 2010

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.