Chapter 17 Flashcards Preview

Business Year 1 - Keywords > Chapter 17 > Flashcards

Flashcards in Chapter 17 Deck (11):
1

Budgets

Financial plans that forecast revenue from sales and expected costs over a time period

2

Variance analysis

The process of investigating any differences between forecast data and actual figures

3

Cash flow

The movement of cash into and out of the business over a period of time

4

Cash flow forecasts

States the inflows and outflows of cash that the managers of a business expect over some future period

5

Break-even output

The level of output at which costs exactly equal revenue

6

Contribution

The difference between revenue and variable costs

7

Trade credit

The period of time given by suppliers before customers have to pay for products

8

Margin of safety

The amount by which a business' current level of output exceeds break-even output

9

Profitability

A measure of financial performance that compares a business' profits to some other factors such as revenue

10

Profit margin

A ratio that expresses a business' profit as a % of its revenue over some trading period

11

Big data

Massive volume of both organised and non-organised information that is very large