MP-013 TERMS

Front

Benchmark

Back

A point of reference

Front

Bias

Back

Prejudice

Front

Budget

Back

An estimate of income and expenses for a particular period of time

Front

Business plan

Back

A statement of a business’s goals and an outline of its strategies to reach those goals

Front

Capital expenditure

Back

A one-time purchase a business makes (e.g., land, building, equipment)

Front

External information

Back

Facts that come from sources outside the business (e.g., government, media)

Front

Intermediate-range forecasting

Back

Sales forecasting that predicts sales for periods of three months to two years; used to plan quarterly or yearly budgets or to determine whether to make capital expenditures (purchases of equipment, land, etc.)

Front

Internal information

Back

Facts that come from sources inside the business (e.g., accounting records, financial statements)

Front

Inventory

Back

The goods a business has in stock

Front

Long-range forecasting

Back

Sales forecasting that predicts sales for periods of more than two years; used when making strategic plans to develop new products, enter new markets, build new facilities, etc.