9350494
| Question | Answer |
| Sales Forecast | Project of future sales revenue, often based on previous sales data. |
| Consumer income | The amount of income remaining after taxes and expenses have been deducted from wages. |
| Consumer trends | The habits or behaviours of consumers that determine the goods and services they buy. |
| Economic growth | The rise in output of an economy as measured by GDP usually as a percentage. |
| Economic variables | Measures within the economy which have effects on businesses and consumers e.g. unemployment, inflation, interest rates ad exchange rates. |
| Extrapolation | Forecasting future trends based on past data. |
| Forecasting | A businesses process, assessing the probable outcome using assumptions about the future. |
| Time series data | A method that allows a business to predict future levels from past figures. |
| Average cost or unit cost | The cost of producing one unit, calculated b dividing the total cost by the ouput. |
| Fixed cost | A cost that does not change as a result of a change in output in the short run. E.g. rent, rates, admin. |
| Long run | The time period where all factors of production are variable. |
| Profit | Total revenue - total costs |
| Sales revenue | Price x quantity of output |
| Sales volume | The quantity of output sold in a particular time period. |
| Semi-variable cost | A cost that consists of both fixed and variable elements. |
| Short run | The time period were at least one factor of production is fixed. |
| Total cost | The entire cost of producing a given level of output. |
| Total revenue | The amount of money the business receives from selling output. |
| Variable cost | A cost that rises as output rises. |
| Break-even | When a business generates just enough revenue to cover its total costs. |
| Break-even chart |
Image:
Be Chart (image/png)
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| Break-even output |
The output a business needs to produce so that its total revenue and total costs are the same.
Image:
Bep (image/png)
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| Break-even point | The point at which total revenue and total costs are the same. |
| Contribution | The amount of money left over after variable costs have been subtracted from revenue. The money contributes towards fixed costs and profit. Selling price per unit - variable costs per unit |
| Margin of safety | The range of output between the break-even level and the current level of output, over which a profit is made. |
| Budget | A quantitative economic plan prepared and agreed in advance. |
| Budgetary control | A business system that involves making future plans, comparing the actual results wit the planned results and then investigating the causes of any differences. |
| Historical figures | Quantitative information based on past trading records. |
| Production cost budget | A firm's planned production costs for a future period of time. |
| Sales budget | A firm's planned sales for a future period of time - can be measured in terms of volume or revenue. |
| Variance | The difference between actual financial figures and those budgeted |
| Variance analysis | The process of calculating variances and attempting to identify their causes. |
| Zero-based budgeting or zero budgeting | A system of budgeting where no money is allocated for costs or spending unless they can be justified by the fund holder (they are given a zero value). |
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