Finance Flashcards
Start up?
Costs that you will only have to pay once
Running costs?
Costs that you will always have to pay
Direct costs?
Costs that you pay for the product (Eg. Phone cases)
Indirect costs?
Costs that are not to do with the actual product being made (Eg. Rent)
Fixed?
Costs that stay the same (Eg insurance)
Variable ?
A cost that changes (Eg, gas cooker)
Revenue?
What you make before tax
Profit?
The money that is made after everything is taken away
Loss?
When a business loses money
Break even?
The point at which a business does not make or lose money
Marin of safety?
The difference between the target of actual sales and the break even point
Cash flows?
Money flowing in/Flowing out
Expenditure ?
An amount of money spent
Gross profit?
A company’s total expenditure minus the cost of sales
Net profit?
Actual profit after working expenses
