Glossary of Accounting Terms

All A B C D E F G H I J K L M N O P Q R S T U V W Y Z

Index of Accounting Terms - P

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Icon representing employee payments
Payroll Related Terms: Wages, Salaries, Employee Compensation What is Payroll? Simplify payroll processing and ensure compliance.
Icon representing taxes related to employee wages
Payroll Tax Related Terms: Employment Tax, Wage Tax, Withholding Tax What is Payroll Tax? Taxes imposed on wages and salaries that employers are required to withhold and remit.
Icon representing expenses tied to a specific time period.
Period Costs Related Terms: Operating Expenses (many are period costs), Selling, General & Administrative (SG&A) Expenses What are Period Costs? Expenses that are not directly tied to product production and are reported on the income statement in the period they are incurred (e.g., administrative salaries, rent, marketing).
Icon representing a maximum price limit
Price Ceiling Related Terms: Maximum Price, Price Control What is a Price Ceiling? A government-imposed limit on how high a price can be charged for a product or service.
Pricing Strategies Icon representing methods for setting prices
Pricing Strategies Related Terms: Cost-Plus Pricing, Value-Based Pricing, Profitability, Revenue, Costs Pricing Strategies outline the diverse methods businesses employ to set optimal prices for products or services, balancing costs, value, competition, and market objectives to maximize profitability and market share.
Pricing Strategies - Competitive Pricing Icon representing market-based pricing approaches
Pricing Strategies - Competitive Pricing Related Terms: Pricing Strategies, Market Analysis, Product Positioning, Price Wars What is Competitive Pricing? A strategy setting prices based on competitors' prices rather than solely on costs or customer perceived value.
Pricing Strategies - Cost-Plus Pricing Icon highlighting markup on costs
Pricing Strategies - Cost-Plus Pricing Related Terms: Pricing Strategies, Costs, Fixed Costs, Variable Costs, Profit Margin What is Cost-Plus Pricing? A method where a fixed percentage (markup) is added to the total cost of producing a product or service to determine its selling price.
Pricing Strategies - Economy Pricing Icon representing low-cost offerings
Pricing Strategies - Economy Pricing Related Terms: Pricing Strategies, Cost Control, Target Market, Sales Volume What is Economy Pricing? A strategy targeting price-sensitive customers by offering basic products or services at minimal cost with low profit margins, relying on high volume.
Pricing Strategies - Penetration Pricing Icon showing market entry strategy
Pricing Strategies - Penetration Pricing Related Terms: Pricing Strategies, Market Share, New Product Launch, Competitive Advantage What is Penetration Pricing? A strategy involving setting a low initial price for a new product or service to quickly attract customers and gain market share.
Pricing Strategies - Premium Pricing Icon for high-value products
Pricing Strategies - Premium Pricing Related Terms: Pricing Strategies, Brand Equity, Target Market, Perceived Value What is Premium Pricing? A strategy setting a high price for products or services perceived as high quality, exclusive, or luxurious to target less price-sensitive customers.
Pricing Strategies - Price Skimming Icon for new product pricing
Pricing Strategies - Price Skimming Related Terms: Pricing Strategies, New Product Launch, Product Life Cycle, Innovation What is Price Skimming? A strategy setting a high initial price for a new, innovative product to maximize revenue from early adopters before gradually lowering it.
Pricing Strategies - Value-Based Pricing Icon focused on customer perception
Pricing Strategies - Value-Based Pricing Related Terms: Pricing Strategies, Customer Value, Perceived Value, Market Segmentation What is Value-Based Pricing? A strategy setting prices primarily based on a product's or service's perceived value to the customer, rather than on its cost or competitors' prices.
Icon representing earnings or financial gain
Profit Related Terms: Earnings, Income, Gain, Net Income What is Profit? The financial gain realized when revenue exceeds the total expenses, costs, and taxes.
Icon representing a report of revenues and expenses
Profit & Loss (P&L) Statement Related Terms: Income Statement, Statement of Earnings What is a Profit & Loss (P&L) Statement? A financial statement that summarizes a company's revenues, costs, and expenses over a specific period to determine its profit or loss.
Icon representing the percentage of profit relative to revenue
Profit Margin Related Terms: Net Profit Margin, Gross Profit Margin, Return on Sales (ROS) What is Profit Margin? A ratio that measures a company's profitability by dividing its profit (net or gross) by its revenue, expressed as a percentage.
Icon representing profitability ratios analysis.
Profitability Ratios Related Terms: Gross Profit Margin, Net Profit Margin, Operating Profit Margin, Return on Assets (ROA), Return on Equity (ROE) What are Profitability Ratios? Financial metrics used to assess a business's ability to generate earnings relative to revenue, operating costs, balance sheet assets, or equity.

Accounting and Bookkeeping
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Watch as Professor A introduces Coco and Cami to Accounting and Bookkeeping, explaining how these digital tools can automate their bookkeeping, generate reports, and help them manage their finances more efficiently.

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