costs that will rise when sales increase and fall when there is a fall in the demand for the product.
1 of 12
fixed costs
costs that remain the same even when sales fall or increase
2 of 12
initial stock
start up with something but also a runing stock
3 of 12
running costs
costs that you pay out regulary
4 of 12
start up costs
costs that you only typically pay out when starting your business
5 of 12
break even
when a business covers its costs and makes neither a profit nor a loss
6 of 12
revenue
businesses make their revenue by selling goods and/or services to customers
7 of 12
3 sources of revenue
1)interest- ppiad on money in a bank savings acount. 2)investment- nicome from people buying shares in the business or lending it money. 3)rental income- renting out prperty that is no currently required to anoter business.
8 of 12
expenditure budget
an estimate of all the planned bsuiness costs for a set period of time
9 of 12
budgetary control
compares what the business planned to spend or make with what it did actually spend or more
10 of 12
net cash flow
the difference between the cash inflow and outflow figures over a particular period of time
11 of 12
cost of sales
how much it costs you to make the product
12 of 12
Other cards in this set
Card 2
Front
fixed costs
Back
costs that remain the same even when sales fall or increase
Comments
No comments have yet been made