5) Financial Decisions Flashcards
1
Q
what are 4 examples of financial objectives
A
revenue, cost and profit
cash flow objectives
long term investment
funding
2
Q
ROI formula
A
(ROI / cost of investment) x 100
3
Q
percentage change in profit formula
A
(current yr profit - prve yr profit / prev yr) x 100
4
Q
gross profit formula
A
sales revenue - cost of sales
5
Q
net profit formula
A
gross profit - operating expenses
6
Q
4 ways to improve cash flow
A
overdraft
hold less stock
debt factoring
sale and leaseback
7
Q
what is fixed budgeting
A
the budget is strict
8
Q
what is flexible budgeting
A
budget is loose and can be changed
9
Q
2 examples of internal finance
A
rationalisation
retained profits
10
Q
3 examples of external fiance
A
overdraft
debt factoring
loans
11
Q
break even output formula
A
fixed costs / contribution per unit
