Break even analysis

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  • Created by: _Holly98
  • Created on: 24-04-16 09:42

1. which is a limitation of break even analysis

  • it applies to all products in the mix
  • assumes all fixed costs are constant
  • assumes all variable costs are the same
  • it is accurate
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Other questions in this quiz

2. what is a good source of information to help with start up?

  • leaflet
  • entrepreneur experience
  • A-Level textbook
  • guessing

3. what is the definition of cash flow forecast

  • describes the movement of cash in and out of the business
  • the amount of cash paid to employees
  • the movement of profit in and out of the business
  • the movement of cash out of the business

4. why is cashflow important for start up

  • shareholders want to keep as much cash as possible
  • make sure business can afford to pay its suppliers
  • its not
  • so business can offer credit

5. what is the formula of contribution

  • variable costs - total saleswhi
  • total sales - variable costs
  • total sales X fixed costs
  • total sales + variable costs


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