The method of evaluating the costs associated with maintaining a department. The rate takes into account for direct and indirect costs as well as the amount of time it takes to manufacture a particular product.
Penalty for exceeding free time (usually 72 hours) allowed for taking delivery of a shipment from the shipping or transporting company's warehouse.
If a company recorded only paper transactions and then decides to utilize a more efficient method, like a computer tracking system. This often happens when a new business starts out with paper and then experiences tremendous growth in profits. The business will switch to an automated bookkeeping ...
Method in which price of a product is changed according to its demand higher price when the demand is strong, lower price when it is weak.
Method in which consumer response to various price points in a range of prices is analyzed to arrive at the highest acceptable price. Also called value oriented pricing.
Method in which costs are deducted from what consumers are willing to pay, to see if an adequate profit margin is possible.
Promissory note from a borrower to a lender, with a specific due date or payable whenever lender demands repayment. In contrast to a mortgage loan, a demand note does not require a show-cause notice to be given to a delinquent borrower.
Loan (such as an overdraft) with or without a fixed maturity date, but which can be recalled anytime (often on a 24-hour notice) by the lender and must be paid in full on the date of demand. Also, the borrower can pay off a demand loan at any time without incurring early-payment penalties.
