More Key words 0.0 / 5 ? BusinessMore Key wordsBTEC NationalEdexcel Created by: NicoleBroad97Created on: 10-04-14 12:26 Costs All expenditures involved in the business 1 of 24 Expenditure I s the money the business pays out 2 of 24 Overheads Everyday running costs of a business 3 of 24 Profit When revenue is more than expenditure 4 of 24 Loss When Expenditure is more than revenue 5 of 24 Breakeven The breakeven point for a business is when the total revenue is equal to the total costs 6 of 24 Margin of difference Difference between the breakeven point add the actual production of the business 7 of 24 Cashflow Money coming in and out of the business 8 of 24 Sales revenue Income business taken from the sales 9 of 24 Revenue General Income of a business 10 of 24 Balance Sheet Is a statement of the total assets and liabilities of an organisation at a particular date 11 of 24 start up costs Costs that the business have to pay out when they first start up . E.g Carpet fittings 12 of 24 Fixed costs Fixed costs DO NOT CHANGE as out put increases 13 of 24 Variable costs These costs do vary with output . If the business makes more items it will have higher variable costs. E.g raw materials and workers wages 14 of 24 Total costs the money spent by a business on producing a given level of output. 15 of 24 Margin of safety Difference between breakeven point and units of actual sales 16 of 24 Cashflow forecast A prediction of a businesses future cashflow 17 of 24 Opening stock The stock you intend to sell that a business stored with each month/year 18 of 24 Purchases What you buy during that year to keep stock up 19 of 24 Closing stock What stock you are left with 20 of 24 net profit The money that comes into a business from selling a product or service after all expenditure/ costs have been deducted 21 of 24 Receipts Are the inflows going into the bank account 22 of 24 Payments The outflows going out of the banks account 23 of 24 Financial statement A business keeps various types of financial records to monitor its performance and ensure that taxes are paid 24 of 24
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