Overall Revision Flashcards
What is profit?
Profit = total revenue - total costs
What are variable costs?
Costs that change with output.
What are fixed costs?
Costs that do not change with output.
What are semi-variable costs?
Costs that are partly fixed and partly variable.
How is breakeven calculated?
Breakeven = fixed costs / (selling price - variable cost per unit)
What is variable cost per unit?
The variable costs of making one product.
What are total variable costs?
Variable cost per unit x quantity.
What is contribution?
Selling price - variable cost per unit.
What is total contribution?
Contribution per unit x quantity or total revenue - total variable costs.
What is revenue?
Money made from selling goods and services or price x quantity.
What is revenue expenditure?
Regular payments made to maintain the business (running costs).
What is capital expenditure?
The purchase or improvement of fixed (non-current) assets.
What are receivables?
Money the business is due to receive from customers.
What are payables?
Money the business is due to pay to suppliers.
What is surplus or deficit?
Income - expenditure.
What is unlimited liability?
The owners are fully responsible for the debts of the business.
What is a stakeholder?
A person or organisation with an interest in a business.
What is a cash flow forecast?
A prediction of cash inflows and outflows.
