Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

edexcel gcse business > 2.4 > Flashcards

2.4 Flashcards

1
Q

revenue

A

selling price x number of units sold

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

total variable costs

A

variable cost per unit x number of units sold

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

total costs

A

fixed costs + variable costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

profit

A

revenue - total costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

interest on loans (in %)

A

(total repayment - borrowed amount) / borrowed amount x 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

break even (units)

A

fixed costs / (selling price - variable cost per unit)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

break even (revenue)

A

break even (units) x sales price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

margin of safety

A

actual or budgeted sales (or output) - break even sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

net cash flow

A

total cash inflows (receipts) - cash outflows (total payments)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

opening balance

A

closing balance of the previous period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

closing balance

A

opening balance + net cash flow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

lead time

A

delivery date - date stock re-ordered

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

gross profit

A

sales revenue - cost of sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

gross profit margin (%)

A

(gross profit / revenue) x 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

net profit

A

gross profit - other operating expenses and interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

net profit margin (%)

A

( net profit / revenue ) x 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

average rate of return (ARR) (%)

A

(average annual profit / cost of investment ) x 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

average annual profit

A

total profit / number of years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

percentage change

A

(difference in figures / original figure ) x 100

20
Q

average

A

total of all individual values / number of values in the set

21
Q

Q: What is profit?

A

A: Profit is the reward for the risk entrepreneurs take in providing a product/service

22
Q

What are the two main types of profit?

A

A: Gross profit and net profit.

23
Q

Q: How is gross profit calculated?

A

A: Gross profit = Sales revenue - Cost of sales.

24
Q

Q: How is net profit calculated?

A

A: Net profit = Gross profit - (Operating expenses + Interest).

25
Q

Q: How do you calculate the Gross Profit Margin?

A

A: Gross Profit Margin = (Gross profit / Sales revenue) × 100%.

26
Q

Q: What does the Gross Profit Margin indicate?

A

A: It shows the proportion of revenue left over after paying for costs of sales.

27
Q

Q: How do you calculate the Net Profit Margin?

A

A: Net Profit Margin = (Net profit / Sales revenue) × 100%.

28
Q

Q: What does the Net Profit Margin indicate?

A

A: It shows the proportion of revenue left over after paying all expenses.

29
Q

Q: What is the Average Rate of Return (ARR)?

A

A: The ARR measures the profit from a proposed capital project

30
Q

Q: How is the ARR calculated?

A

A: ARR = (Average annual profit / Cost of investment) × 100%.

31
Q

Q: What does the ARR help determine?

A

A: It helps decide which project generates the most profit.

32
Q

What is Sales Revenue?

A

A: Sales revenue is the financial value of units sold.

33
Q

Q: How do you calculate Market Share?

A

A: Market Share = (Sales revenue of business / Total sales revenue in market) × 100%.

34
Q

Q: How do you calculate the percentage contribution of a product to overall sales revenue?

A

A: Percentage contribution = (Sales revenue of product X / Total sales revenue of all products) × 100%.

35
Q

What is quantitative data?

A

A: Quantitative data is statistical numeric data used for decision making

36
Q

Q: What are the two sources of quantitative data?

A

A: Primary data (collected firsthand) and secondary data (collected by others).

37
Q

Q: What are examples of quantitative data sources?

A

A: Graphs, charts, financial data, marketing data, tables, and infographics

38
Q

Q: What is a bar chart?

A

A: A bar chart visually compares data, like monthly umbrella sales.

39
Q

Q: What is a pie chart?

A

A: A pie chart shows proportions, such as the breakdown of umbrella sales by model.

40
Q

Q: What is a scatter graph used for?

A

A: A scatter graph identifies relationships between two variables, like temperature and barbecue sales.

41
Q

Q: What types of financial data do businesses use?

A

A: Sales revenue, profit, costs, tax, interest rates, asset valuations, and bank balances.

42
Q

Q: What is Companies House used for?

A

A: Companies House collects key financial data from companies each year.

43
Q

Q: How is marketing data collected?

A

A: Through surveys, focus groups, observation, customer feedback, footfall data, publications, and media.

44
Q

Q: How can marketing data help businesses?

A

A: It aids in sales forecasting, product development, and promotional planning.

45
Q

Q: What does market data include?

A

A: Demographics, market size, competitor market shares, growth rates, average prices, investment data, and commodity prices.

46
Q

Q: How can market data benefit businesses?

A

A: It helps identify opportunities, plan for threats, and make investment decisions.

47
Q

Q: What are some limitations of financial data?

A

A: It can be interpreted differently, becomes outdated quickly, and may ignore qualitative factors like social responsibility or ethics.

edexcel gcse business (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions