Flashcards
Unit 2 Business BTEC Mr Dack OAT
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 costCosts that a business
has to pay when the
business sets up. For
examples, 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 etc... - 5Total costsTC= FC
+ VC - 6RevenueThis is the money
that comes into the
business. It is also
known as turnover
or revenue - 7ProfitThis is the amount
of money that the
business earns
AFTER paying for
all of its 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 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 profitCosts linked
directly with the
production of a
product - 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 - 18AssetsThings that
the business
owns - 19LiabilitiesThings that
the 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
- Key Words for your Unit 2 Finance exam
- Criado por
- Mr Dack
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