27. Sales and costs
Sales The goods and services that a business sells, and the money it
receives for them from customers
Sales director a professional responsible for directing and managing the sales
department of a company
Sales department another name for sales
Sales team A sales force
Sales meeting a gathering or forum scheduled by a company's sales department
Sales figures the number of sales of something within a particular time frame
Revenue Money from sales
Turnover Money from sales
Sales volume Unit sales
Target result that you are trying to achieve.
Sales growth metric that measures the ability of your sales team to increase
revenue over a fixed period of time
Sales forcecast the process that enables a business to estimate future sales
Costs The amount of money that a business spends
Direct costs The costs that are directly related to providing the product
Fixed costs Do not change when production goes up or down
Variable costs Change when production goes up or down
Cost of goods sold The variable costs in making particular goods
(COGS)
Overheads Are not directly related to production
Overhead costs / Are not directly related to production
indirect costs
Expenses Indirect costs
Operating expenses Indirect costs
Costing The activity of calculating costs
Costings Amounts calculated for particular things
Selling price The amount a buyer pays for a product or service
Direct production For example, costs of raw materials, labor etc.
costs
Gross margin The selling price minus the direct production costs
Total costs All the costs together
Net margin The selling price minus the total costs
Profit margin The selling price minus the total costs
Mark-up The selling price minus the total costs
,28. Profitability and unprofitability
Make a profit The product is profitable or profit-making
Profitable Yielding profit or financial gain
Profit-margin to gauge the degree to which a company or a business activity
makes money
Break even to have no profit or loss at the end of a business activity
Reach break-even When you reach the point where you earn enough money to pay
point for expenses, without any profit
Loss-making relating to a business or part of a business that does not make a
profit
Loss-leader Product to attract people to the store, knowing they will then also
buy profitable products
Money spinners Products that have very good profitability
Cash cows Products that have very good profitability
Budgeted for The money that they planned to spend on each one
Over budget When the actual expenditure is more than the budget
Overspent When the actual expenditure is more than the budget
Undersprent The actual expenditure is lower than the budget
Under budget The actual expenditure is lower than the budget
Expenditure spends money spent on something
Economies of scale You can spread the production costs over a large number of
products
Diseconomies of A bigger increase in production costs
scale
Experience curve As it produces more, it learns how to do things more and more
quickly and efficiently
Learning curve As it produces more, it learns how to do things more and more
quickly and efficiently
, 29. Getting paid
Order When you ask to buy something
Place an order When you ask to buy something
Dispatched When the goods are ready, they are shipped to you
Shipped When the goods are ready, they are dispatched to you
Invoice Document asking for payment for something and showing the
amount to pay
Invoicing The activity of producing invoices and sending them to customers
Billing The activity of producing invoices and sending them to customers
Chases an They ask for payment because it has not been paid on time
invoice
Settle an invoice Pay the invoice
Trade credit A period of time, before they have to pay
Discount A reduction in the amount they have to pay
Upfront Pay before they receive the goods
Credit policy
Payment terms Rules on when and how customers should pay
Cashflow The timing of payments coming into and going out of the business
Accounts the business are they customers
Key accounts The most important customers
Bad debts Some business that own money from you buy will probably never
pay
Debtors Waiting for the customers to pay you
Creditors You must pay the suppliers and other organization and you haven’t
done yet
Accounts Waiting for the customers to pay you
receivable
Receivables Waiting for the customers to pay you
Accounts payable You must pay the suppliers and other organization and you haven’t
done yet
Payables You must pay the suppliers and other organization and you haven’t
done yet
Sales The goods and services that a business sells, and the money it
receives for them from customers
Sales director a professional responsible for directing and managing the sales
department of a company
Sales department another name for sales
Sales team A sales force
Sales meeting a gathering or forum scheduled by a company's sales department
Sales figures the number of sales of something within a particular time frame
Revenue Money from sales
Turnover Money from sales
Sales volume Unit sales
Target result that you are trying to achieve.
Sales growth metric that measures the ability of your sales team to increase
revenue over a fixed period of time
Sales forcecast the process that enables a business to estimate future sales
Costs The amount of money that a business spends
Direct costs The costs that are directly related to providing the product
Fixed costs Do not change when production goes up or down
Variable costs Change when production goes up or down
Cost of goods sold The variable costs in making particular goods
(COGS)
Overheads Are not directly related to production
Overhead costs / Are not directly related to production
indirect costs
Expenses Indirect costs
Operating expenses Indirect costs
Costing The activity of calculating costs
Costings Amounts calculated for particular things
Selling price The amount a buyer pays for a product or service
Direct production For example, costs of raw materials, labor etc.
costs
Gross margin The selling price minus the direct production costs
Total costs All the costs together
Net margin The selling price minus the total costs
Profit margin The selling price minus the total costs
Mark-up The selling price minus the total costs
,28. Profitability and unprofitability
Make a profit The product is profitable or profit-making
Profitable Yielding profit or financial gain
Profit-margin to gauge the degree to which a company or a business activity
makes money
Break even to have no profit or loss at the end of a business activity
Reach break-even When you reach the point where you earn enough money to pay
point for expenses, without any profit
Loss-making relating to a business or part of a business that does not make a
profit
Loss-leader Product to attract people to the store, knowing they will then also
buy profitable products
Money spinners Products that have very good profitability
Cash cows Products that have very good profitability
Budgeted for The money that they planned to spend on each one
Over budget When the actual expenditure is more than the budget
Overspent When the actual expenditure is more than the budget
Undersprent The actual expenditure is lower than the budget
Under budget The actual expenditure is lower than the budget
Expenditure spends money spent on something
Economies of scale You can spread the production costs over a large number of
products
Diseconomies of A bigger increase in production costs
scale
Experience curve As it produces more, it learns how to do things more and more
quickly and efficiently
Learning curve As it produces more, it learns how to do things more and more
quickly and efficiently
, 29. Getting paid
Order When you ask to buy something
Place an order When you ask to buy something
Dispatched When the goods are ready, they are shipped to you
Shipped When the goods are ready, they are dispatched to you
Invoice Document asking for payment for something and showing the
amount to pay
Invoicing The activity of producing invoices and sending them to customers
Billing The activity of producing invoices and sending them to customers
Chases an They ask for payment because it has not been paid on time
invoice
Settle an invoice Pay the invoice
Trade credit A period of time, before they have to pay
Discount A reduction in the amount they have to pay
Upfront Pay before they receive the goods
Credit policy
Payment terms Rules on when and how customers should pay
Cashflow The timing of payments coming into and going out of the business
Accounts the business are they customers
Key accounts The most important customers
Bad debts Some business that own money from you buy will probably never
pay
Debtors Waiting for the customers to pay you
Creditors You must pay the suppliers and other organization and you haven’t
done yet
Accounts Waiting for the customers to pay you
receivable
Receivables Waiting for the customers to pay you
Accounts payable You must pay the suppliers and other organization and you haven’t
done yet
Payables You must pay the suppliers and other organization and you haven’t
done yet
