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Description
Mind Map by adverts.games.fa, updated more than 1 year ago
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Created by adverts.games.fa
over 12 years ago
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Business Studies A1 and A2
- Costs
- Direct costs ( Variable Costs)
- These are costs that are directly related to the production process.
- These are costs that are directly related to the production process.
- Indirect costs ( Fixed Costs)
- These are costs that cannot be directly related to the production process.
- These are costs that cannot be directly related to the production process.
- This is what a business spends its money on, such as wages and
materials.
- Start-up costs
- When a business starts up, money needs to be raised to allow the business to start trading. However these are one off costs.
- When a business starts up, money needs to be raised to allow the business to start trading. However these are one off costs.
- Direct costs ( Variable Costs)
- Total costs
- The formula for total costs is:
- Total costs = Fixed costs + Variable costs
- Total costs = Fixed costs + Variable costs
- In order to work out the total costs you need to:
- Multiply the variable cost per unit by the number made / sold.
- Add that total ( the variable costs that are mentioned above) to the fixed costs.
- Multiply the variable cost per unit by the number made / sold.
- The formula for total costs is:
- Revenue
- This is all the money coming into the business ( the income ) from selling its goods and services.
- Sources of revenue:
- This is the various ways in which a business can recieve income.
- This is the various ways in which a business can recieve income.
- The formula for revenue is :
- Revenue = number of sales x price per unit
- Revenue = number of sales x price per unit
- This is all the money coming into the business ( the income ) from selling its goods and services.
- Expenditure
- This is the money that business pays out . ( COSTS)
- Overheads
- Overheads is the everyday running costs of a business
- Overheads is the everyday running costs of a business
- Types of expenditure include:
- Utility bills
- Telephone bills
- General maintenace costs
- Wages
- Utility bills
- This is the money that business pays out . ( COSTS)
- Investment
- This is putting money into something with the expectation of a gain.
- This is putting money into something with the expectation of a gain.
- Security
- These are assets that the business owner pledges to the bank in oreder to recieve a business loan.
- These are assets that the business owner pledges to the bank in oreder to recieve a business loan.
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