Processing raw materials, components, and parts while building finished goods based on a customer’s specifications and expectations. Manufacturing commonly employs a man/machine setup with division of labor in a large scale production.

Management information system type targeting any production becoming computerized. Managers need to plan and direct operations within the company and use modern management information systems designed to collect and present the necessary

Industries making chemical, mechanical, physical material transformations, substances, and components into consumer and industrial goods. This is known to be an uncoordinated and highly competitive collection of industries.

A 12-month period of one person’s productive effort represented as a unit of work. Also known as labor year.

coverage or conditions not included in a standard policy are specifically written into this policy. To comply with state laws, a larger brokerage for a larger account will prepare this type of

For distribution in the same channels or to the same customers, this commission agent handles non-competitive but complementary products from several manufacturers. Manufacturer’s agents are normally confined to specific sales territories, used

1. In Accounting, this is an amount in excess of a company’s breakeven point in sales revenue by actual sales revenue. A ratioed percentage. The bigger this margin, the less danger to

Assuming that a bank’s cost of funds remains the same, this is the cost of funding one additional loan.

Cost determination method for obtaining just one more dollar of capital. When considering how to raise additional funds, some methods are more costly than others.

The process of identifying the benefits and costs of different alternatives. This is done by examining incremental effects on total revenue and total cost. These effects are caused by very small, single

Consumer’s outlay change divided by the corresponding total quantity purchased change.

Extent of relative ease, minimum cost, and maximum reliability in manufacturing a particular item.

By actually consuming or producing a good, a household or business enjoys a marginal benefit.

The last additional capital unit’s annual percentage return. the investment becomes viable at this represented market interest rate. Also known as marginal productivity of capital.

An single production company in an industry that is barely profitable at prevailing market prices on their product line(s). Such a company may be unable to take advantage of economies that benefit

A company having a relatively minor impact on its own field of operation due to dominating rival companies of greater size and influence. Marginal players are always susceptible to their larger rivals’

Total incurred cost change of some households or businesses due to a unit change in other households’ or businesses’ consumption or output.

Using a large number of claims, collecting data on average claims helps derive this type of insurance rates. Based on information available on certain groups, these rates are then customized.

Over the counter trading of a particular security by a dealer able, ready, and willing to buy and/or sell.