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Tuesday, 7 May 2024, 5:18 AM
Site: Bcom International Supply Chain Management
Course: Bcom International Supply Chain Management (IMM)
Glossary: SCS Glossary
F

FAB Method

FAB stands for : Feature, Advantage and Benefit. Features refer to the physical characteristics of the product, such as the size, shape and colour. Advantages refer to the performance characteristics of the product, such as that a cell phone can receive emails. Benefits refer to the favourable result that the buyer obtains from using the product, such as the cell phone providing the user with the freedom of receiving emails at home and not needing to be in the office at all times.

Facilitation Roles

The facilitation role takes a decision or plan into effect; execution - make it happen.

Factor Cost

Factor cost is a measure expressed as an income or factor cost is used when using the income method to calculate GDP. These measures exclude indirect taxes such as VAT, but include subsidies on income such as housing subsidies.

Factor Market

Factor market is a market where factors of production are traded, example the labour market.

Factors of Production

Factors of production refer to the resources needed to carry out production, example labour.

Fare

The price paid by the user of a transport service at the moment of use.

 


Final Goods

Final goods are bought by the end user or household, example shoes.

Financial Account

Financial account records all financial flows coming in and going out of a country.

Financial Intermediary

Financial intermediary examples include banks, the Johannesburg Securities Exchange (JSE) and insurance houses, which act as a link between household savings and firms’ investment (capital formation).

Financial Sector

Financial sector refers to intermediaries through which funds are channelled from surplus units to deficit units, example banks.

Finished Goods

Goods that have either been completed in a production process, or purchased in a completed form, but which have not yet been sold to customers.

Firms

Firms refer to all forms of business ownership, including informal businesses.

Fiscal Budget

Fiscal Budget is the main instrument of fiscal policy, which is presented annually by the Minister of Finance and outlines government spending and government receipts.

Fiscal Policy

Fiscal policy outlines government spending and government receipts.

Fixed Cost

Costs that do not vary with the quantity shipped in the short run, i.e. costs that must be paid up front to begin producing transportation services.

 


Fixed Costs

Fixed costs – costs that remain constant even when volume changes.

Fixed Inputs or Inputs

Fixed inputs or inputs are those inputs that do not change in the short run with the number of items being produced. Examples of fixed factors are buildings, machinery, salaried staff, transport (trucks, etc.) and land.

Flexibility

willingness to change or compromise.

Floating Exchange Rates

Floating exchange rates exists when currencies are left free to appreciate or depreciate according to demand and supply and there is no reserve bank intervention.

Flow

Flow is a variable that has time dimension, i.e. it occurs over a period of time.

Follow Up

The salesperson’s work is certainly not over after the order has been placed. Selling is about building long-term relationship and ensuring that continual sales are ensured. Following up is thus crucial to this relationship. To follow up with a customer you need to follow steps for example checking the order and thanking the customer.

Forecast Accuracy

Forecast accuracy is the extent of difference between the forecasted values and the actual values. 

Forecasting

Forecasting is the process of making predictions based on past and present data and most commonly by analysis of trends. A commonplace example might be estimation of some variable of interest at some specified future date. Prediction is a similar, but more general term.

Foreign Exchange Market

Foreign exchange market exists everywhere and anywhere where currencies are traded.

Foreign Sector

Foreign sector refers to all countries, businesses and people outside the national border.

Free Cash Flow

Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. ... Interest payments are excluded from the generally accepted definition of free cash flow.

Free Goods

Free goods are found in abundance and do not carry a price directly, although taxation may be used to maintain these goods, e.g. fresh air

Freight Forwarder

A person or a corporation that accepts less than a truckload or less than a carload shipment from shippers and combines them into carload or truckload lots. 

Frictional Unemployment

Frictional unemployment refers to those people who are temporarily between jobs.

Full Employment

Full employment is a macroeconomic objective and refers to the full employment of all factors of production, the most important being labour.

Functional Products

Functional products are items that are bought regularly and are considered staples. They are widely available in retail outlets, such as, grocery and convenient stores and have a predictable long life cycle due to their stability, although, competition is high resulting in low profit margins.