M

Management

1) The process of managing an organisation especially performing such major tasks as planning, organising and controlling. (2) Those workers in an organisation who make decisions and oversee the work of others for the fulfilment of those decisions.

Mission statement

A broad enduring statement of the purpose of the organisation, its reason for existence.

Macro Accounting

A composite of accounts maintained by members of an industry, or maintained by members of an industry, or for the whole economic activity within a region or country, national accounting.

Matching principle

A method of analysing the sales and expenses which make up those sales to a particular period (eg. if a builder sells a house then the builder will tie in all the raw materials and expenses incurred in building and selling the house to one period – usually in order to see how much profit was made).

Manufacturing account

An account used to show what it cost to produce the finished goods made by a manufacturing business.

Middleman

Individuals and organisations in the chain of distribution separating the manufacturer of a product from the final consumer. Examples include wholesalers and retailers. See also channels of distribution

Minority interest

Minority interest represents a minority of shares not held by the holding company of a subsidiary. It means that the subsidiary is not wholly owned by the holding company. The minority shareholdings are shown in the holding company accounts as long term liabilities.

Materials

Physical goods (and their cost) used in the manufacture of a product, often separated into DIRECT MATERIAL (that which goes directly into the product such as cream into ice cream, or steel into cars) and INDIRECT MATERIAL (that which is used in maintaining the manufacturing environment such as cleaning fluids or oil for lubrication of manufacturing equipment). Indirect materials are usually part of the overhead component of cost. The term materials when used without the direct or indirect qualifier usually refers to direct materials.

Marketing

The function in an organisation that is responsible for the promotion, selling and distribution of the goods and services produced. (2) The process of getting an organisation’s goods or services into the hands of customers.

Mail order

The marketing system in which a producer, wholesaler or retailer allows the consumer to order products (usually from a catalogue) by mail and delivers the products by return mail.

Market Share

The percentage of the total market sales that are made by one company. For example: a particular company may have a 10% market share of all PCs sold internationally.