Theme 2 Mrs Carr Flashcards
1
Q
What are the type of costs?
A
Fixed costs
Variable costs
2
Q
What is Revenue?
A
Selling price x quantity sold
3
Q
What is Break-even?
A
Fixed costs/Contribution(SP-VC)
4
Q
What is margin of safety?
A
Actual-Break-even
5
Q
What are the two types of budgets?
A
Allocated
Zero based
6
Q
What is variance?
A
Actual-Budgeted
7
Q
What is a zero based budget?
A
When a budget isn’t allocated and you have to justify why you should be given a certain amount of money
8
Q
What is a sales forecast?
A
When you try to predict how many sales the business is going to get in a certain time period
