KSB Exam 2

Product

Something that can be marketed to customers because it provides benefits and satisfies a need.

Breakeven Analysis

Method of determining the level of sales at which the company will break even (have no profit or loss).

Contribution Margin per Unit

Excess of revenue per unit/variable cost per unit.

Four types of utility

Time utility, place utility, ownership utility, and form utility.

Innovative

Characteristic of entrepreneurial start-ups, indicating a focus on new ideas and products.

Patent

Grant of the executive right to produce or sell a product, process, or invention.

Market Share

The company’s portion of the market that it has targeted.

Fixed Costs

Costs that don’t change regardless of the quantity of goods sold.

Variable Costs

Costs that vary in total as the quantity of goods sold changes but stay constant on a per-unit basis.

Statement of Cash Flows

Financial reporting on cash inflows and outflows resulting from operating, investing, and financing activities.

Management Accounting

Branch of accounting that provides information and analysis to decision makers inside the organization.

Financial Accounting

Branch of accounting that furnishes information to individuals and groups both inside and outside the organization.

Cash Flow

The movement of cash into and out of the business.

Accrual Accounting

System that records transactions when they occur, regardless of cash payments or receipts.

Income Statement

Financial statement summarizing a business’ revenues, expenses, and net income.

Balance Sheet

Report on a company’s assets, liabilities, and owner’s equity at a specific point in time.

Liabilities

The debts that a company owes to outside individuals or organizations.

Owner’s Equity

Your investment in your business, representing the owner's claim on assets.

Market Segmentation

Dividing the market into smaller groups with common characteristics.