JCE Commerce & Office Procedures 25 flashcards

33 cards. Read the term and the definition here. The deck at the top of this page is optional.

Span of control

The number of subordinates who report directly to one supervisor. A wide span reduces management layers but increases each supervisor's coordination and monitoring load.

Policy versus procedure

A policy is a standing principle or rule that guides decisions. A procedure is the step-by-step sequence used to carry out a recurring task under that policy.

Quorum

The minimum number of members who must be present for a meeting to transact valid business. Decisions taken without a quorum are usually invalid.

Delegation of authority

The transfer of decision-making power to a subordinate for specified tasks. Authority and accountability for the outcome remain with the delegating manager.

Retention schedule

A documented list stating how long each record class must be kept and what happens at the end of that period. Statutory periods override internal preferences.

Full block letter format

A letter layout in which every element, including date, inside address, salutation, body and signature block, begins at the left margin, usually with open punctuation.

Memorandum heading

The four-line heading To, From, Date and Subject used for internal messages. A memorandum has no salutation or complimentary close because it stays inside the organisation.

Seven Cs of communication

Clear, concise, concrete, correct, coherent, complete and courteous. These criteria are used to test and improve the quality of a business message.

Bad-news message structure

A neutral opening buffer, an objective explanation of the facts, a clear statement of the refusal, then a constructive alternative or forward-looking close.

Minutes of a meeting

The official record of attendance, decisions, actions, owners and deadlines. Verbatim speech is excluded unless the meeting formally resolves to record it.

Gross profit margin

Gross profit divided by sales revenue, expressed as a percentage. It shows the share of each sales unit left after deducting the direct cost of goods sold.

Mark-up versus margin

Mark-up is profit as a percentage of cost, while margin is profit as a percentage of selling price. For the same figures, mark-up is always the larger percentage.

Bill of lading

A transport document that acts as a receipt for goods shipped, evidence of the carriage contract, and a document of title transferable by endorsement.

Letter of credit

A bank undertaking to pay the seller against documents that comply strictly with the credit terms. Payment depends on documents, not on the goods themselves.

Incoterms

Standard international trade terms defining which party bears cost, risk and customs formalities. The point where risk passes may differ from the cost point.

Accounting equation

Assets equal liabilities plus equity. Every transaction changes at least two elements while keeping both sides of the equation in balance.

Double-entry rule

Every transaction is recorded with equal debits and credits. Debits increase assets and expenses; credits increase liabilities, equity and income.

Trial balance limitation

A trial balance proves that debit and credit totals agree. It does not detect errors of principle, compensating errors or transactions entirely omitted.

Bank reconciliation

A statement reconciling the cash book balance with the bank statement by adjusting for deposits in transit, unpresented cheques, bank charges and bank errors.

Straight-line depreciation

An annual charge equal to cost minus residual value, divided by the asset's useful life. The same amount is charged every year of that life.

Current ratio

Current assets divided by current liabilities. It indicates whether short-term resources are sufficient to settle obligations falling due within one year.

Records life cycle

The stages a record passes through: creation, distribution, use, maintenance and storage, then authorised disposal or permanent archiving.

Alphabetic filing order

Letter-by-letter order ignores spaces and punctuation within names; word-by-word order treats each word separately. Units, then names, are filed before individuals.

Version control

A document management practice that records each revision, identifies the current approved version and prevents earlier drafts from being mistaken for the final copy.

Three-two-one backup rule

Keep at least three copies of data, stored on two different media types, with one copy held off-site so a single incident cannot destroy all copies.

Service recovery paradox

A customer whose complaint is resolved quickly and fairly may become more loyal than one who never experienced a problem. Ignored complaints reverse this effect.

First-contact resolution

The percentage of customer enquiries fully resolved during the first interaction, calculated as enquiries resolved first time divided by total enquiries, times one hundred.

Reception verification duty

Before admitting a visitor or disclosing staff movements, reception confirms the visitor's identity and appointment, logs arrival and notifies the host.

Complaint handling sequence

Listen without interrupting, acknowledge the customer's feeling, gather the facts, agree a remedy within authority, confirm the outcome and follow up.

Incremental backup

A backup that copies only files changed since the most recent backup of any type. Restoring requires the last full backup plus each incremental set in sequence.

Phishing indicators

Warning signs include a mismatched sender domain, urgent demands, unexpected attachments and requests for credentials or changed bank details.

Ergonomic workstation setup

Monitor top at or slightly below eye level and about an arm's length away; elbows near ninety degrees; feet flat; lower back supported by the chair.

Conflict of interest

A situation where a personal, financial or family interest could improperly influence professional judgement. It must be declared, and the person should withdraw from the decision.