Planning Finance Keywords

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  • Created by: Lowings
  • Created on: 12-02-15 09:30
What is Revenues?
Revenues are the earnings or income generated by a firm as a result of its trading activities.
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What is Profit?
Profit is the surplus of revenue over total costs for a business over a trading period.
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What are Fixed costs?
Costs that do not alter when the business alters its level of output. Examples include rent and rates.
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What are Variable costs?
Alter directly with the business's level of output, for example, fuel costs.
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What are Total Costs?
Fixed and variable costs added together.
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What is Oppurtunity cost?
The benefit from the next best alternative that has been given up.
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What are Budgets?
Financial plans looking at expected revenues and costs over a future period.
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What is Contribution?
The difference between revenue and variable costs; it us used to pay fixed costs and to provide profits. (Contribution = Revenue - Variable costs)
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What is Cash flow?
The movement of cash into and out of a business over a period of time.
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What are Cash Flow Forecasts?
Cash Flow Forecasts state the inflows and outflows of cash that the managers of a business expect over some future period.
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What is Trade credit?
Period of time given by suppliers before customers have to pay for goods or services.
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What is a budget-holder?
Someone who is responsible for the use and management of a particular budget.
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What are delegated budgets?
Exists when firms give control over budgets to relatively junior employees.
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What are Business Objectives?
Goals or targets perused by businesses that shape the decision making of entrepreneurs.
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What is Insolvency?
A business is insolvent if it doesn't have enough assets to pay its debts as they fall due. An individual is insolvent if he or she is unable to discharge his or her debts as they fall due.
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What is Capacity?
Capacity is the maximum output a business can produce when using all its resources to their maximum extent.
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Other cards in this set

Card 2

Front

What is Profit?

Back

Profit is the surplus of revenue over total costs for a business over a trading period.

Card 3

Front

What are Fixed costs?

Back

Preview of the front of card 3

Card 4

Front

What are Variable costs?

Back

Preview of the front of card 4

Card 5

Front

What are Total Costs?

Back

Preview of the front of card 5
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