|product life cycle|
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Definition of product life cycle
product life cycle
a model depicting the stages through
a mission of increasing market share, even at
An equation determining aggregate output as a function of aggregate inputs such as labor and capital.
Also referred to as the weighted-average life (WAL). The average number of years that each
The annual period over which budgets are prepared.
Repetitive cycles of economic expansion and recession.
Fluctuations of GDP around its long-run trend, consisting of recession, trough, expansion, and peak.
an incidental output of a joint process; it is salable,
A product that is an ancillary part of the primary production process, having
A material created incidental to a production process, which can be
An association of most of the life and health insurance companies in Canada that conducts research and compiles information about the life and health insurance industry in Canada.
The length of time between a firm's purchase of inventory and the receipt of cash
Period between firm’s payment for materials
In general, the time between cash disbursement and cash collection. In net working capital
The length of time between a purchase of materials and collection of accounts receivable generated by the sale of the products made from the materials.
a process costing document that
The frequent, scheduled counting of a subset of all inventories,
the time between the placement of an order to
Deferred nominal life annuity
A monthly fixed-dollar payment beginning at retirement age. It is nominal
The period over which a company expects to be able to use an asset.
economic production run (EPR)
an estimate of the number
equivalent units of production (EUP)
an approximation of the number of whole units of output that could have been
An expiration cycle relates to the dates on which options on a particular security expire. A
Factor of Production
A resource used to produce a good or service. The main macroeconomic factors of production are capital and labor.
grade (of product or service)
the addition or removal of product
Gross Domestic Product
Total output of final goods and services produced within a country during a year.
Gross domestic product (GDP)
The market value of goods and services produced over time including the
Gross National Product
Total output of final goods and services produced by a country's citizens during a year.
Gross national product (GNP)
Measures and economy's total income. It is equal to GDP plus the income
Group Life Insurance
This is a very common form of life insurance which is found in employee benefit plans and bank mortgage insurance. In employee benefit plans the form of this insurance is usually one year renewable term insurance. The cost of this coverage is based on the average age of everyone in the group. Therefore a group of young people would have inexpensive rates and an older group would have more expensive rates.
Investment product line (IPML)
The line of required returns for investment projects as a function of beta
Joint Policy Life
One insurance policy that covers two lives, and generally provides for payment at the time of the first insured's death. It could also be structured to pay on second death basis for estate planning purposes.
A product that has the highest sales value from among a group of products
The technique of stripping all non-value-added activities from
Level Premium Life Insurance
This is a type of insurance for which the cost is distributed evenly over the premium payment period. The premium remains the same from year to year and is more than actual cost of protection in the earlier years of the policy and less than the actual cost of protection in the later years. The excess paid in the early years builds up a reserve to cover the higher cost in the later years.
life cycle costing
the accumulation of costs for activities that
The average number of years of life remaining for a group of people of a given age and gender according to a particular mortality table.
Life Income Fund
Commonly known as a LIF, this is one of the options available to locked in Registered Pension Plan (RPP) holders for income payout as opposed to Registered Retirement Savings Plan (RRSP) holders choice of payout through Registered Retirement Income Funds (RRIF). A LIF must be converted to a unisex annuity by the time the holder reaches age 80.
Insurance that provides protection against an economic loss caused by death of the person insured.
Life Insurance (Credit Insurance)
Group Term life insurance that pays or reduces the balance due on a loan if the borrower dies before the loan is repaid.
The person who's life is protected by an individual policy.
An approach to costing that estimates and accumulates the costs of a product/service over
manufacturing cycle efficiency (MCE)
a ratio resulting from dividing the actual production time by total lead time;
The period between the 2 latest highs or lows of the S&P 500, showing net performance of a
Mortgage Life insurance (Credit Insurance)
Decreasing term life insurance that provides a death benefit amount corresponding to the decreasing amount owed on a mortgage.
National Income and Product Accounts
The national accounting system that records economic activity such as GDP and related measures.
Net Domestic Product
GDP minus depreciation.
Net National Product
GNP minus depreciation.
A general term referring to period costs, such as selling, administration and financial expenses.
The average time intervening between the acquisition of materials or services and the final
The period of service for which a company compensates its employees.
Political Business Cycle
A business cycle caused by policies undertaken to help a government be re-elected.
Process flow production
A production configuration in which products are continually
the total units produced during a period
Any item intended for sale.
an assessment about the number of components in a product
product contribution margin
the difference between selling price and variable cost of goods sold
The cost of goods or services produced.
This is a key factor in the profit model of a business. product
a cost associated with making or acquiring inventory
The total of all costs assigned to a product, typically including direct
The time it takes to bring new and/or improved products to market.
product line margin
see segment margin
A business’s investment in technology, people and materials in order to make, buy and sell products or services to customers.
product- (or process-) level cost
a cost that is caused by the development, production, or acquisition of specific products or services
A type of mortgage-pipeline risk that occurs when a lender has an unusual loan in production or
See sales mix.
the number of different types of products
An agreement by the loan purchaser to allow the monthly loan quota to be
A general term referring to indirect costs.
Production payment financing
A method of nonrecourse asset-based financing in which a specified
Production yield variance
The difference between the actual and budgeted proportions
the number of total units that could be
Output per unit of input, usually measured as output per hour of labor.
Real Business Cycle Theory
Belief that business cycles arise from real shocks to the economy, such as technology advances and natural resource discoveries, and have little to do with monetary policy.
The frequency with which an asset is replaced by an equivalent asset.
Sales Revenue Revenue recognized from the sales of products as opposed to the provision of
The time period during which inventory can be retained in stock and beyond
Shelf life control
Deliberate usage of the oldest items first, in order to avoid exceeding
Split Dollar Life Insurance
The split dollar concept is usually associated with cash value life insurance where there is a death benefit and an accumulation of cash value. The basic premise is the sharing of the costs and benefits of a life insurance policy by two or more parties. Usually one party owns and pays for the insurance protection and the other owns and pays for the cash accumulation. There is no single way to structure a split dollar arrangement. The possible structures are limited only by the imagination of the parties involved.
Temporary Life Insurance
Temporary insurance coverage is available at time of application for a life insurance policy if certain conditions are met. Normally, temporary coverage relates to free coverage while the insurance company which is underwriting the risk, goes through the process of deciding whether or not they will grant a contract of coverage. The qualifications for temporary coverage vary from insurance company to insurance company but generally applicants will qualify if they are between the ages of 18 and 65, have no knowledge or suspicions of ill health, have not been absent from work for more than 7 days within the prior 6 months because of sickness or injury and total coverage applied for from all sources does not exceed $500,000. Normally a cheque covering a minimum of one months premium is required to complete the conditions for this kind of coverage. The insurance company applies this deposit towards the cost of a policy at its issue date, which may be several weeks in the future.
A product that provides life coverage for a specified duration typically not beyond the age of 75.
Term life insurance
A contract that provides a death benefit but no cash build-up or investment component.
Term Life Insurance
A plan of insurance which covers the insured for only a certain period of time and not necessarily for his or her entire life. The policy pays a death benefit only if the insured dies during the term.
UNITS OF PRODUCTION
A depreciation method that relates a machine’s depreciation to the number of units it makes each
A whole life insurance product whose investment component pays a competitive interest rate
An unbundled life product with a separate investment component. It typically does not participate in companies profits.
The estimated life span of a fixed asset, during which it can be expected to
Variable life insurance policy
A whole life insurance policy that provides a death benefit dependent on the
Weighted average life
Component that provides life coverage during the insured's life.
Whole life insurance
A contract with both insurance and investment components: (1) It pays off a stated
a mission that attempts to maximize shortterm
A method of costing that involves making continual, incremental improvements to the
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