Flashcards
Key Terms
Flashcards do conjunto (21)
- 1Fixed costCosts that do not change with output-they have to be paid regardless of how much a business produces
- 2Variable costsCosts that do change with output-these costs are directly linked to the product or service
- 3Start-up costsCosts that a business has to pay when the the business sets up. For example, fixtures and fittings.
- 4Operating costs(running costs)Costs that have to be paid for the day to day running of the business. For example, heat, light, rent.
- 5Total costsTC=FX+VC
- 6RevenueThis is the amount of money that comes into the business. It is also know as turnover or revenue.
- 7ProfitThis is the amount of money that the business earns AFTER paying for all it's costs.
- 8Break-evenLevel of output where total revenue=total costs
- 9Margin of safetyThis is the difference between your break even point and the number of units you expect to sell.
- 10Cash flow forecastingThis is a forecast the business makes for what it expects to have coming into the business and out out of the business.
- 11InflowsMoney coming into the business
- 12OutflowsMoney going out of the business
- 13Cost of salesCosts linked directly with the production of a product
- 14Gross profitGP=Sales-Cost of sales
- 15Net ProfitNP=Gross profit-expenditure
- 16Income statement(profit and loss)A statement of income and expenditure -usually produced every 12 months
- 17Balance sheets (statement of financial position)A statement outlining the financial position of the business.
- 18AssestsThings that a business owns
- 19LiabilitiesThings that a business owes
- 20Sources of financeWays in which the business can raise money. These can be internal (from within the business) and external (outside of the business)
- 21BudgetingThe process of planning income and expenditure within a business.
Informações
- Descrição
- BTEC Business studies Unit 2 Finance
- Criado por
- patrick.j.dohert
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