Definition: Competitive Advantage, as the name signifies the upper hand of a business entity over its market rivals, which is the result of the company's strategies and continuous efforts. It represents the combination of distinguishing features of the firm and its products, which has value to the target customers and are considered peerless by them. In finer terms, … [Read more...] about Competitive Advantage
Overheads
Definition: Overheads can be understood as the indirect expenditure which can't be appropriately charged to or economically identified with any specific cost centres, cost object or cost unit. The overheads are not related to individual jobs, work order or products rather they are incurred in connection to the output, or in providing certain incidental facilities or … [Read more...] about Overheads
Directing
Definition: Directing is an action-oriented function of management, in which the superior communicates with and provides leadership to their subordinates about what to do and how to do it, while motivating them to give their best in the performance of the task, and observing them that they do it in the manner specified, so as to ensure quality in the achievement of … [Read more...] about Directing
Direct Cost
Definition: Direct cost, or otherwise called as prime cost or traceable cost. It is the cost which can be directly allocated to the specific cost unit, cost centre or cost object, i.e. product, facility or project. On the basis of traceability, costs are classified into two types, wherein the first is direct cost, the other being indirect cost. Example Cost of Plastic for … [Read more...] about Direct Cost
Cash Book
Definition: Cash Book implies a subsidiary book, wherein all cash inflows and outflows made by the entity are recorded datewise, in chronological order. It is called the book of original entry, as the transactions are recorded as and when they occur, right from the source documents. Cash book is similar to the cash account in the sense that on the debit side of the book, … [Read more...] about Cash Book
Methods of Inventory Valuation
Definition: The term 'inventory' implies the goods available with the business enterprise for the purpose of sale. It serves as the excess supply of goods, which is helpful in keeping the operations going, without any delays or shortage of stock. It has three stages: Raw Materials: It refers to the unprocessed supply of material, which serves as the main component for the … [Read more...] about Methods of Inventory Valuation
Employee Promotion
Definition: Employee Promotion can be described as the upward movement of an employee in the organizational hierarchy. It is the process of raising the position or rank of an employee working in an organization, which results in an increase in remuneration, designation, status, authorities and responsibilities, etc. Promotion is a form of internal mobility, which is a result … [Read more...] about Employee Promotion
Micromanagement
Definition: Micromanagement implies the management style wherein the manager does continuous and thorough checking of work and performance. It is an act of high-level supervision and controlling minute details of a person's work to such an extent that it delays the task. Such a style often generates results in the short term, but it has a very negative impact on the mental … [Read more...] about Micromanagement
Influencer Marketing
Definition: Influencer Marketing is a trending form of marketing that most brands use to promote their products by collaborating with social media influencers. It involves endorsements and product mentions from influencers. Companies often ask these influencers to promote their products on their social media page to get the attention of their followers. For a follower, an … [Read more...] about Influencer Marketing
Employee Separation
Definition: Employee Separation refers to the process of termination of the relationship between employee and employer, which takes place when the employee leaves the company. Types of Employee Separation On the basis of initiation for separation, there are two types of employee separation: Voluntary Separation The form of separation when the employee himself/herself … [Read more...] about Employee Separation