semi finals

• Three important elements in the production system


  • Input
  • Production process
  • Output
• Production Process


  Materials are transformed into the final product
• Output


  The final product from the production process
• Manpower


  The human labor force involved in the manufacture of products
• Manpower is the most serious and main factor of production
• Machine


  Manufacturing equipment used in the production of goods or delivery of services
• Materials


  The raw materials necessary in the production of a product
• Methods


  The process or way of transforming raw materials to finished products
• Heterogeneous product


  Has dissimilar characteristics, parts, and physical appearance. It can be easily identified from other products.
• Homogeneous product


  Has a physical appearance, taste, or chemical content that can hardly be distinguished from that of the other products.
• Product description


  Promotes and explains what a product is and why it's worth buying. Provides customers with details around the features and benefits of the product so they're obliged to buy.
• Prototype


  Created before the massive production of such product. A duplication of a product as it will be produced, which may contain such details as color, graphics, packaging and directions.
• Benefits of Prototype


  • Change, update or refine the design
  • Describe & demonstrate your product accurately
  • Test the functionality of the idea
  • Influence the professionals to take your concept seriously
  • Discover what components of the prototype need attention
• Value chain


  A method or activities by which a company adds value to an item, with production, marketing, and the provision of after-sales service. Refers to the series of activities a company undertakes to create and deliver a product or service to the market.
• Supply chain


  A structure of organizations, people, activities, data, and resources involved in moving a product or service from supplier to customer.
• Revenue


  A result when sales exceed the cost to produce goods or render the services.
• Cost


  Expenses or the amount of money used to produce or manufacture goods/merchandise
• Fixed Costs


  Expenses that remain constant regardless of the level of production or sales.
• Variable Costs


  Costs that fluctuate in direct proportion to the level of production or sales.
• Operating Costs


  Expenses associated with day-to-day operations, including both fixed and variable costs.
• Startup Cost


  One-time expenses incurred when launching a new venture.
• Direct Costs


  Costs directly attributable to the production of goods or services.
• Indirect Costs


  Overhead costs not directly tied to the production process but necessary for business operations.
• Forecasting


  A tool used in planning that aims to support management or a business owner in its desire to adjust and cope with uncertainties of the future.
• Factors to consider in forecasting revenues


  • The economic condition of the country
  • The competing businesses or competitors
  • Changes happening in the community
  • The internal aspect of the business
• Operating Expenses


  Costs incurred in the operation of an enterprise
• Cost of Goods Sold / Cost of Sales


  The amount of merchandise or goods sold by the business for a given period of time.
• Merchandise Inventory, Beginning


  Goods and merchandise at the beginning of operation of business or accounting period.
• Purchases


  The merchandise or goods purchased. Example: Cost to buy each pair of Jeans or t-shirt from a supplier.
• Merchandise Inventory, End


  Goods and merchandise left at the end of operation or accounting period.
• Freight-In


  The amount paid to transport goods or merchandise purchased from the supplier to the buyer.
• Gross Profit


  The profit a business makes after subtracting all the costs that are related to manufacturing and selling its products or services.
• Net Sale


  Total revenue generated by a business after deducting the cost of goods sold, taxes, and other expenses.
• Profit


  The gross income. The amount of gross profit provides information to the entrepreneur about revenue earned from sales.
• Cost


  The purchase price of the product including the total outlay required in producing.
• Quick Ratio


  Measures its short-term obligations with its most liquid assets and therefore excludes inventories from its current assets.
• Return of Investment (ROI)


  The amount of net income per peso invested to the business.
• Mark-Up


  The amount added to the cost of a product to determine the selling price.
• Forecasting


  A planning tool that helps the entrepreneur copes with uncertainties in the future operation of the business
• The gross profit rate of the entrepreneurial venture is computed by dividing the gross profit by net sales