# Key Terms

Key Term	Definition
Yield	*Yield* is a number of servings from a particular product (i.e. 8 pints in a gallon)
Gross Profit (GP)	*Gross profit* is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. This is often given as a percentage.
Cost of Sale (COS)	*Cost of Sale* refers to the direct costs of producing the goods sold by a company. This is often given as a percentage.
Stock Holding (Days)	*Stock Holding* is the value of goods, such as parts, materials, and finished products, that a company has available at a particular time. This can be calculated in order to calculate the number of days cover the business has in its inventory. This is calculated by conducting the following calculation: (Close Stock / Consumption) x days in the stock period
Surplus	*A surplus* describes the amount of an asset or resource that exceeds the portion that's actively utilised. A surplus can refer to a host of different items, including income, profits, capital, and goods.
Deficit	*A deficit* is an amount by which a resource, especially money, falls short of what is required. A deficit occurs when expenses exceed revenues, imports exceed exports, or liabilities exceed assets. A deficit is synonymous with shortfall or loss and is the opposite of a surplus
Delivery	*Delivery* is the receipt of goods following order, for example, a liquor stock order.
Allowance	*An allowance* is a monetary figure that compensates for a shortfall in revenue. An example of this is within cocktails. If a shot of Vodka has a retail price of £4.00 and a bottle of Tomato Juice is set at £2.50, but a Bloody Mary has a retail price of £5.00. The stock would be expecting £6.50 for this drink due to the retail prices of the ingredients. a £1.50 allowance is given to compensate for this shortfall.
Revenue	*Revenue* is the income that a business has from its normal business activities, usually from the sale of goods and services to customers.
Gross	*Gross* in a financial sense means an initial amount before any deductions, expenses, or withholdings.
Net	Net income is the residual amount of earnings after all expenses have been deducted from sales.
Discount	*Discount* is a deduction from the usual cost of something