Business Finance Paper Terminology Flashcards
Advance variance
Actual figures are worse than budgeted
Appreciation
Gradual rise in value/price of one currency in terms of another
Batch production
A method that involves completing one operation at a time on all units before preforming the next
Budgeting
Provides a target for costs or revenue that a business department must aim to reach over a given period of time
Buffer inventory
Stocks held as a preoccupation to cope with unforeseen demand
Business angles
Entrepreneurial individuals who provide capital in return for a proportion of the companies equity
Business plan
A document/plan for the development of the business
giving details such as the product, resources,cost,revenue,cash forecast
Capacity utilisation
The percentage of total capacity that is actually being used in a period
Depreciation
One currency’s value has gone lower in terms of another
Economic growth
The rise in output of an economy as measured by the growth in GDP, usually as a percentage
Flow production
Mass production
Where raw materials are transformed into a finished product via a continuous process
Grants
A sum of money given by governments or other organisations for a specific cause
Inflation
Increase in the general level of prices in an economy over a period of time
intellectual property rights
A form of legal protection that includes
Patents, copyrights and trademarks
Inventory control
The optimum quantity of goods/components a business holds for the purpose of resale/production
