Category Archives: Dictionary Glossary of Terms

Dictionary Glossary of Terms used in Bizmanualz Policies and Procedures Manuals

Working Capital? | Definition

Working Capital is a common measure of the health of your business operations. Knowing how to manage working capital is a crucial aspect of financial procedures. Working capital refers to the funds required to operate your firm on a daily, weekly, and monthly basis. It is the money used to pay your suppliers for materials, as well as the money needed to pay for the items and services (such as inventory and payroll) that you have utilized while waiting for your customers to pay you. Continue reading Working Capital? | Definition

What is a Work Instruction? | Definition

Many get these terms mixed up: policy, business Process, Procedure, and Work Instruction. In truth, most people create work instructions and refer to them as procedures. Or they will write a procedure, which is really a process. Some think of these terms as interchangeable. What is a work instruction?

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Weighted Average Cost of Capital (WACC)? | Definition

We know that a good Return on Invested Capital is required to attract investors, but we also need our cost of capital (i.e. debt interest) to be lower than our Return on Invested Capital (what we do with investor money). The idea is to find cash for as little as possible and then invest it in projects within your company that will return as much as possible for less than the cost of capital. What is the weighted average cost of capital (WACC) and how is it calculated?

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