Business & Accounting Terms: Video Series

The definition of a business unit is any separate and distinct part of an enterprise with its own books, records and accountability. Find out how a business unit will have its own manager and staff, separate from the larger company, with information from a certified public accountant in this free video on business terms.

A matrix structure is the framework used by a business to define the operational management, channels of communication and levels of responsibility for employees. Discover how the matrix structure of a business provides an efficient way of getting things done with information from a certified public accountant in this free video on business terms.

A payback period is defined by the amount of time over which a loan or investment is recovered or paid back. Learn more about how payback periods allow investors to know when they can expect to get their money back with insight from a certified public accountant in this free video on accounting terms.

A purchase discount is an inducement for early payment provided by vendors to people or customers who pay bills ahead of time. Get a percentage off of a purchase pay back by paying in a timely fashion with advice from a certified public accountant in this free video on accounting terms.

A W-2 form is the actual form used for tax purposes showing the IRS and the employee how much money was earned and how much in taxes was paid throughout the year. Use a W-2 form to get credit for taxes paid on an annual income tax return with information from a certified public accountant in this free video on tax terms.

The definition of interest expense is the amount of interest paid in total over the period of time that the money was used. Determine the interest expense on a loan with help from a certified public accountant in this free video on accounting terms.

Inventory turn is used to measure the efficiency of a business by looking at the number of time inventory has been bought and sold. Find out more about inventory turn, and how it looks at beginning and ending balances in inventory, with information from a certified public accountant in this free video on accounting terms.

Capital expenditure is defined at the expense of purchasing the things that make a business run properly, such as a building or a piece of equipment. Discover how capital expenditures should last a certain period of time with information from a certified public accountant in this free video on business terms.

Cost plus profit is the amount of money that a vendor makes for a product based on the cost of production and an agreed upon amount of profit. Use cost plus profit to quote a product price with help from a certified public accountant in this free video on business terms.

CPI is defined as the consumer price index. It is the measure of the average cost of goods and services purchased by households nationally, regionally and locally. Learn how CPI uses the cost of goods in 1967 to measure to different costs with information from a certified public accountant in this free video on accounting terms.

The definition of gross profit is the basic revenue of a business minus the cost of creating that business. Determine gross profit for a business by figuring out the difference between revenue and the cost of sales with help from a certified public accountant in this free video on accounting terms.

Gross profit percentage is defined as the ratio between gross profit and total sales. Determine gross profit percentage by calculating the gross profit first with instructions from a certified public accountant in this free video on business and accounting terms.

Inventory turnover ratio is the number of times that inventory is sold and replenished in a given period. Determine inventory turnover ratio by calculating the cost of sales divided by the average inventory with help from a certified public accountant in this free video on business and accounting terms.

In sales, margin is defined as ratio between the the selling price and the cost of a product. Determine the margin for goods or services with tips from a certified public accountant in this free video on business and accounting terms.

Operating income is defined as the net total of expenses, costs and sales revenue for a business or enterprise. Use operating income to determine the return on business capital with information from a certified public accountant in this free video on business and accounting terms.

Operating margins for a business should be as high as possible by selling at a high enough price, or buying at a low enough price, to cover the cost of overhead and produce a profit. Learn more about operating margins in business with tips from a certified public accountant in this free video on business and accounting terms.

Opportunity costs are defined as the difference between the money a person could have earned and the money that was actually earned. Find out how opportunity costs are created when a person chooses to spend time doing something less profitable with information from a certified public accountant in this free video on business and accounting terms.

In business terms, perpetuity is defined as the period of time over which someone owns an asset and produces income from that asset. Learn more about owning something in perpetuity with information from a certified public accountant in this free video on business and accounting terms.

PERT, or program evaluation and review technique, is the system by which someone plans a project, finds resources for the project, and manages the use of resources for the life of the project. Use the PERT technique to deliver results as efficiently as possible with insight from a certified public accountant in this free video on business and accounting terms.

The definition of retail margins is the difference between the selling price and the cost of the individual item or service. Determine retail margin for a business or store with information from a certified public accountant in this free video on business and accounting terms.

Simple interest is defined as the fixed rate of interest charged for a fixed period of time. Calculate simple interest on a loan with help from a certified public accountant in this free video on business and accounting terms.

A static budget is a measurement tool used to evaluate the results of a business by looking at the sales, expenses and profits of a business history. Determine whether to pursue a business enterprise by examining the static budget with advice from a certified public accountant in this free video on business and accounting terms.

Strategy development is defined as a system used to drive a business by creating a vision of what the business should do, and then applying ideas of organization and accountability to pursue a goal. Use strategy development tools to accomplish business goals with advice from a certified public accountant in this free video on business and accounting terms.