Finance in Business e 5.0 / 5 based on 9 ratings ? BusinessFinanceBTEC NationalEdexcel Created by: babeyshepCreated on: 20-04-15 10:15 Start-Up Costs Money spent by a business before it can start trading 1 of 29 Operating Costs (Running Costs) Money spent on a regular basis to keep a business running 2 of 29 Income Money paid into a business 3 of 29 Fixed Costs (Indirect Costs) Expenditure which don't vary depending on the sales 4 of 29 Variable Costs (Direct Costs) Costs which vary depending on sales 5 of 29 Total Costs Total expenditure over a set period of time 6 of 29 Expenditure Money spent by a business 7 of 29 Overheads Everyday running costs of a business 8 of 29 Profit When revenue is more than expenditure 9 of 29 Loss When revenue is less than expenditure 10 of 29 Breakeven Point When the income is the same as the expenditure - There is no profit or loss 11 of 29 Budgeting Planning future expenditure and revenue targets to ensure profit 12 of 29 Budgetary Control Checking what is actually happening and comparing it with the plan to make improvements 13 of 29 Cash Inflows The amounts of money entering a business' bank account 14 of 29 Cash Outflows The amounts of money leaving a business' bank account 15 of 29 Net Cash Flow The difference between the cash inflow and outflow over a particular time period 16 of 29 Cash Balance The amount of money forecast to be in the bank account 17 of 29 Overdraft If a business pays more out of it's bank account than it has in there - Allowed y banks but with an extra charge 18 of 29 Capital Money spent by the business on assets (items that should last a long time) 19 of 29 Cost of Sales The cost of producing a product 20 of 29 Gross Profit Money made from a sale once the production costs have been deducted 21 of 29 Net Profit Money made from selling a product once all costs have been deducted 22 of 29 Financial Year Trading period where a business collects annual income statements from. (Usually 1st May - 30th April) 23 of 29 Assets Items a business buys that last a long time 24 of 29 Debtors People who owe money to the business 25 of 29 Liabilities Amounts of money that a business owes 26 of 29 Share Capital The amount of money invested in the business by shareholders 27 of 29 Working Capital Money the business can raise quickly 28 of 29 Reserves Money that has been saved from previous profitable years 29 of 29
Comments
Report
Report