definitions

Question 1

cash outflows

Answer 1

the sum of money leaving the business that they pay out each month

Question 1

cash inflows

Answer 1

sum of money received by the business over a period of time

Question 2

variable costs

Answer 2

costs that change with the output, increase as the output increases

Question 3

fixed costs

Answer 3

costs that dont change with the output, they always have to be paid

Question 4

total costs

Answer 4

fixed costs + variable costs

Question 5

contribution

Answer 5

difference between the selling price per unit and the variable costs producing it

Question 6

revenue

Answer 6

amount earnt by an enterprise for selling goods and services to customers

Question 7

profit

Answer 7

difference between total revenue and total costs of the enterprise

Question 8

budget

Answer 8

a plan agreed in advance of income expenditure and profit

Question 9

cash flow forecast

Answer 9

prediction of the total cash inflows and total cash outflows for an enterprise

Question 10

break even

Answer 10

output required for total revenue to equal total cost

Question 11

income statment

Answer 11

a financial document which shows the revenue, costs and profits of an enterprise