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Flashcards in KEY TERMS Deck (21)
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1
Q

what are start up costs?

A

the amount of money spent setting up a business before it starts trading

2
Q

what are operating cost ?

A

money spent on a regular basis to keep a business running

3
Q

what is income?

A

money which is paid into a business

4
Q

what are fixed costs?

A

expenditure on items which does not change with

the number of items sold or produced

5
Q

what are variable costs?

A

costs which vary according to the number of items sold or produced

6
Q

what are total costs?

A

the total amount of money spent running a business over a certain period of time (e.g. a month)

7
Q

what is expenditure?

A

money that a business spends

8
Q

what are over heads costs?

A

the everyday running costs of a business

9
Q

what is profit?

A

occurs when revenue is more than expenditure

10
Q

what is loss?

A

occurs when expenditure is more than revenue

11
Q

what is budgeting?

A

planning the future expenditure and revenue targets with the aim of ensuring a profit is made

12
Q

what is budgetary control?

A

the process of checking what is actually happening, comparing this with the plan and taking action if things are not correct

13
Q

what are cash inflows ?

A

the amounts of money entering a businesses bank account

14
Q

what are cash outflows?

A

the amounts of money leaving a businesses bank account

15
Q

net cash flow

A

the difference between the cash inflow and outflow figures over a particular time period

16
Q

cash balance

A

the amount of money forecast to be in the bank account after the net cash flow figure has been added or subtracted from the existing bank balance

17
Q

over draft

A

this occurs if a business pays more out of its bank account than it has in credit. the bank may allow this but will make an extra charge

18
Q

capital

A

money spent by the business on items which should last a long time (assets)

19
Q

costs of sales

A

the costs of producing a product

20
Q

gross profit

A

the money made from selling a product (the sales revenue) after the cost of producing that product (costs of sales) has been deducted

21
Q

net profit

A

the money made from selling a product after all costs (expenditure) have been deducted from the gross profit.