Glossary - Agribusiness Management - page 443

t elephone interviews A market research technique that involves asking questions of indi-
viduals over the telephone.
terminal value The residual value an investment is expected to have at the end of the
planning horizon.
t est market A market research technique which involves an experiment designed to test
consumer behavior under actual buying condition; a test city or area with characteristics
similar to the target market is selected, a product (typically a new product) is introduced
into the test city or area, sales results are measured and evaluated, and these results are
then generalized to the target market of interest.
Theory X, Theory Y Douglas McGregor's theory about human behavior in business;
based on the notion of the “dual nature of humankind” or people's capacity for love,
warmth, kindness, and sympathy, and at the same time the capacity for hate, harshness,
and cruelty.
time-based competition Competing for customer and market share using the dimension
of time as a source of competitive advantage; includes ideas such as cycle-time-to-
market, customer responsiveness, and fl exibility in operations.
total asset turnover ratio A fi nancial ratio measuring effi ciency; show the sales
dollars the fi rm is able to generate for every dollar invested in assets; total sales / total
assets. See asset turnover ratio .
total cost The sum of total variable cost and total fi xed cost.
total fi xed cost The total of all fi xed costs incurred during an operating period; the total
of all costs that are constant during the operating period, regardless of the level of
production.
total product concept A means to relate the customer's defi nition of value to the agri-
business fi rm's product-service-information strategy by visualizing the four parts of the
fi rm's product / service offering: the generic product, the expected product, the value-
added product, and the potential product.
total quality management (TQM ) An integrated management concept directed
toward continuous quality improvement; involves ideas such as business success
can only be achieved by understanding and satisfying the customer's needs,
statistics and factual data are the basis for problem solving and continuous improve-
ment, and multi-function work teams best perform problem solving and process
improvements.
total revenue The total income from operations received during an accounting or operat-

ing period.
total variable cost The total of all variable costs incurred during an operating period; the
total of all costs that vary directly with the level of production during the operating
period.
trade credit Credit advanced by suppliers and vendors to an agribusiness fi rm in the proc-
ess of providing goods and services to the fi rm.
traditional restaurants Restaurants that offers menu, sit down and dine service.
training programs Learning opportunities for employees devised to meet one
or more of the following objectives: reduce mistakes and accidents; increase
motivation and productivity; and prepare the employee for promotion, growth, and
development.
training programs Educational programs offered by the agribusiness to: reduce mistakes
and accidents; increase motivation and productivity; and prepare employees for promo-
tion, growth and development.