| CoGS | Cost of Goods Sold - total materials or procurement costs of products and services delivered to customers |
| CTS | Cost to Serve - total operating expenses, excluding pay for customer-facing sales reps |
| CTS% Exp% |
CTS Rate - the percentage of Revenue that CTS represents (CTS ÷ Rev) |
| delta PBIT |
change in PBIT - change in NBT or PBIT profitability when comparing two periods |
| GP | Gross Profit - dollar amount of raw profits when CoGS is deducted from Revenue (Rev - CoGS) |
| GM% GP% |
Gross Margin - the percentage of Revenue that GP represents (GP ÷ Rev) |
| KPI | Key Performance Indicator - quantifiable measurements that reflect critical success factors |
| LIPA | Line-Item Profit Analytics - analysis producing profit numbers to the invoice-line level |
| NBC | Net Before (Sales) Compensation - the profit generated after deducting operating expenses but not sales compensation costs — profit that is split between the sales force and the company (GP - CTS) |
| NBC% | NBC Rate - the percentage of Revenue that NBC represents (NBC ÷ Rev) |
| NBT PBIT Net |
Net Profit Before Taxes - "bottom line" profit on a standard P & L (GP - CTS - Sales Comp) |
| P & L | Profit and Loss statement - financial report showing profit or loss from operations for a given period (also called Income Statement) |
| PBIT | Profit Before Interest & Taxes - Net profit exclusive of interest expenses |
| PIP | Peak Internal Profit - total of all realized positive profits — the peak of the profit "whale curve" |
| QPM | Quantum Profit Management - set of philosophies & principles employing LIPA to prioritize and grow profit generation |
| Quantum Costing |
a top-down method of costing business operations down to the line-level - a requirement for LIPA — opposite of activity-based costing |
| Rev | Revenue - amount net of returns and allowances billed to customers for products and services |
| ROTA | Return on Total Assets - financial statistic showing how well investments are utilized |
| TPC | Total Procurement Cost - complete or "real" cost of a product or service when timing, service, convenience and other value-adds are considered |
| whale curve |
graphic illustration of a profit ranking list — shows the peak profit generated by all of the profitable elements |
Quantum Profit Management