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In business and for engineering economics in both industrial engineering and civil engineering practice, the minimum acceptable rate of return, often abbreviated MARR, or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other projects. [1]
Acceptability is an amorphous concept, being both highly subjective and circumstantial; a thing may be acceptable to one evaluator and unacceptable to another, or unacceptable for one purpose but acceptable for another. Furthermore, acceptability is not necessarily a logical or consistent exercise.
Plans have known risks: an acceptable quality limit (AQL) and a rejectable quality level, such as lot tolerance percent defective (LTDP), are part of the operating characteristic curve of the sampling plan. These are primarily statistical risks and do not necessarily imply that a defective product is intentionally being made or accepted.
Churn rate + retention rate = 100%. Most models can be written using either churn rate or retention rate. If the model uses only one churn rate, the assumption is that the churn rate is constant across the life of the customer relationship. Discount rate, the cost of capital used to discount future revenue from a customer. Discounting is an ...
Closely related terms are the rejectable quality limit and rejectable quality level (RQL). [1] [2] In a quality control procedure, a process is said to be at an acceptable quality level if the appropriate statistic used to construct a control chart does not fall outside the bounds of the acceptable quality limits. Otherwise, the process is said ...
Cost-plus pricing is a pricing strategy by which the selling price of a product is determined by adding a specific fixed percentage (a "markup") to the product's unit cost.
Churn rate (also known as attrition rate, turnover, customer turnover, or customer defection) [1] is a measure of the proportion of individuals or items moving out of a group over a specific period. It is one of two primary factors that determine the steady-state level of customers a business will support.
Typically the CEA is expressed in terms of a ratio where the denominator is a gain in health from a measure (years of life, premature births averted, sight-years gained) and the numerator is the cost associated with the health gain. [2] The most commonly used outcome measure is quality-adjusted life years (QALY). [1]