Business studies definitions 2.0 / 5 based on 1 rating ? Business StudiesASAQA Created by: ZoeCreated on: 30-12-12 19:36 Expenditure Budget Setting a maximum figure on what a department or manager can spend over a period of time. This is to control costs. 1 of 9 Overdraft A planned amount of money that comes out of a bank account which the bank must approve. 2 of 9 Contribution Total revenue - variable costs. This calculation is useful for a business that is responsible for a range of products. 3 of 9 Income budget Setting aminimum figure for the revenue to be generated by a product, department, or manager. 4 of 9 Debentures A long term source of finance. A loan that comes from another business or individual. 5 of 9 Infrastructure The network of utitities such as transport links, telecommunications systems, health and education services 6 of 9 Break even Compares firms revenue with its variable and fixed costs to identify the maximum level of sales needed to cover costs. 7 of 9 Cashflow forecast Estimating future inflows and outflows of a firms bank account. 8 of 9 Opportunity cost Cost of missing out on the next best alternative e.g leaving a full time job to become a sole trader loses the benefit of an garunteed annual salery 9 of 9
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