Business Key words Flashcards
(25 cards)
What is Fixed Costs and the Examples?
A cost that NEVER changes.
Wages
What is Variable Costs AND the Examples?
Costs that CHANGES depending on the business.
Salaries
What is Total Costs?
The amount of money sent on a business.
What is Revenue/Sales?
The amount of money a business earns.
What is the formula for Total Costs?
FC + VC (Fixed Costs + Variable Costs) = Total Cost
What is the formula for Revenue?
Sales x Price Per Unit
What is expenditure?
The money you spend in your business.
What is a overhead?
The everyday running costs of a business.
When money is going in to a business, what is it called?
Revenue
When money is going out, what is it called?
Expenditure
When revenue is more than expenditure, what is it called?
Profit
When expenditure is more than revenue, what is it called?
Loss
What is the formula for Profit?
Revenue - Expenditure
What is the formula for Gross Profit?
Revenue - Cost of sales
What is Net Profit?
Gross Profit - Expenditure
What is Costs of Sales?
The amount of money spent on the product being sold.
What is a Break Even Point?
Where a business makes NO profit or NO loss.
What is an income statement? (Profit and Loss account)
A income statement is what measures a companies financial performance over a specific period. It is assessed by revenue and loss.
What is a balance sheet?
A financial statement that summarizes a company’s assets, liabilities and shareholders’ equity at a specific point in time.
What is Margin of Safety?
Margin of Safety is the amount of by which sales would have to fall before the break even point is reached.
What is Cash Flow?
The money that is being transferred in and out of a business.
What is Cash Inflows?
Cash inflow is the money received due to sales, financing or investment.
What is Cash Outflows?
Cash Outflow is the money going out of a business in a period of time. This includes salaries, expenses, supplies and maintenance.
What is a Debtor
Business owes to there’s.
