Archive for the ‘Word of the Day’ Category
An old term for eavesdropping that now includes electronic eavesdropping.
Usage: The couple was earwigging the group of teens at the next table.
Operating revenues less all operating expenses except income taxes and interest. Sometimes referred to as EBIT (Earnings Before Interest and Taxes).
Usage: The financial analysts were examining the changes in operating income from year to year.
A description of a product at the point in the product life cycle where revenues are strong and selling expenses are low.
Usage: A cash cow is frequently in the mature product life cycle stage.
The potential for one or more expected future events to either not take place at all or to occur in some other way than was expected. Also, the possibility of suffering harm or loss.
Usage: Market risk refers to customer behavior; credit risk refers to the potential for default.
The signature space on a contract, a sign-in sheet, or any other document that requires a signature.
Usage: A sales contract isn’t a contract until the signature is on the dotted line.
Memorandum of Understanding. Similar to a Letter of Intent (LOI), the MOU describes the principles of a future agreement.
Usage: An MOU is frequently the first documented step in a Joint Venture.
Filaments of glass that are used to transmit digital voice, data, and video signals. An alternative to coaxial (coax) cable, with is made of copper. Systems that use both fiber and coax are Hybrid Fiber Coax (HFC) systems.
Usage: “Fiber to the home” systems compete with cable TV (CATV).
A method for reflecting the cost of using or owning a fixed tangible asset. (As time passes, many fixed assets decrease in value.) Compares to amortization expense for intangible assets.
Usage: We have a depreciation expense of $1,000 this year on the $3,000 computer we purchased.
Features, functions, qualities, and price that have been determined to be important to potential purchasers of a product or service.
Usage: The marketing department was responsible for identifying the customer requirements so the engineers could design a service that would sell.
Adhering to or complying with the rules and requirements of the Sarbanes-Oxley Act (SOX).
Usage: SOX compliance was supposed to increase confidence in the data found in annual reports of companies traded on the stock exchanges.