Paper 1 Flashcards
1
Q
Total Costs
A
Total fixed costs + Total variable costs
2
Q
Variable Costs
A
Cost of one unit x Quantity produced
3
Q
Revenue
A
Price x Quantity
4
Q
Break Even
A
(Fixed costs ÷ Sales price) - Variable costs
5
Q
Margin of Safety
A
Actual or budgeted sales - Break even sales
6
Q
Interest (on loans)
A
((Total repayment - Borrowed amount) ÷ Borrowed amount) x 100
7
Q
Net Cash Flow
A
Cash inflows - Cash outflows in a given period
8
Q
Opening Balance
A
Closing balance of previous period
9
Q
Closing Balance
A
Opening balance + Net cash flow
10
Q
Profit
A
Total revenue - Total costs
