Buss2 aqa key words

  • Created by: Louisa
  • Created on: 03-06-13 13:18
Budget
A target amount of money set by a business in a specific period of time
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Favourable variance
A difference between the budgeted figure and the actual figure which leads to higher profits than expected
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Adverse variance
A difference between the budgeted figure and the actual figure which leads to lower than expected profit
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Cash flow
The movement of cash in and out of a business over a specific period of time
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Creditors
Suppliers who are owed money by the business - purchases have been made on credit
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Credit control
The monitoring of debts to ensure that credit periods are not exceeded
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Bad debt
Unpaid customer bills that are now unlikely to ever be paid
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Overtrading
Expanding a business rapidly without obtaining all of the necessary finance so that cash flow shortage develops
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Debt factoring
Debt factoring companies buy the customer bills from a business and offer immediate cash (90% of debt)
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Profit margin
The profit made as a proportion of sales revenue
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Gross profit
Sales revenue - variable costs (Ignores fixed cost so is big/gross number)
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Net profit
Sales revenues - total costs
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Return on capital
Measures the profit in relation to the capital invested. Net profit / Capital investment x100
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Organisational structure
The way in which jobs, power and responsibilities are are organised within the business
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Other cards in this set

Card 2

Front

A difference between the budgeted figure and the actual figure which leads to higher profits than expected

Back

Favourable variance

Card 3

Front

A difference between the budgeted figure and the actual figure which leads to lower than expected profit

Back

Preview of the back of card 3

Card 4

Front

The movement of cash in and out of a business over a specific period of time

Back

Preview of the back of card 4

Card 5

Front

Suppliers who are owed money by the business - purchases have been made on credit

Back

Preview of the back of card 5
View more cards

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