Business Key Word and Formulae Flash Cards 0.0 / 5 ? Business StudiesBasic Business Terms and FormulaeProfitGCSEEdexcel Created by: PriyaParmar1236Created on: 27-05-16 23:33 Revenue The amount of income recieved from selling goods and services sold by a business. 1 of 17 Profit Occurs when revenues of a business are greater than its costs over a period of time. 2 of 17 Breakeven The level of output where total revenues are equal to total costs;this is where neither a profit or loss is made. 3 of 17 Cash Flow The flow of cash in and out of a business. 4 of 17 Just-In-Time A stock management system where stocks are onl delivered when they are needed by the production system,and so no stocks are kept by a business. 5 of 17 Buffer Stock The lowest amount of stock kept by a business. 6 of 17 Franchise The right given by one business to another to sell goods or services under it's name. 7 of 17 Franchisee A business that agrees to manufacture,distribute or provide branded product, under licence by a franchisor. 8 of 17 Franchisor The business that give franchisees the right to sell it's product, in return for a fixed sum of money or royalty payment. 9 of 17 Revenue Formula =price per item x quantity 10 of 17 Variable Costs Formula =cost per item x quantity 11 of 17 Total Costs Formula =fixed costs x variable costs 12 of 17 Profit Formula =total revenue - total costs 13 of 17 Net Cash Flow Formula =cash inflows - cash outflows 14 of 17 Closing Balance Formula =opening balance + net cash flow 15 of 17 Contribution Per Item Formula =price per item - variable cost per item 16 of 17 Breakeven Formula =fixed costs ÷ contribution per item 17 of 17
GCSE Business Studies - The Business Organisation, Marketing and Finance 5.0 / 5 based on 1 rating Teacher recommended
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