1.6 Business Planning Flashcards
1
Q
Business plan
A
A business plan is a document setting out what a business does and what it hopes to achieve in the future.
2
Q
Business planing
A
The process of producing a business plan
3
Q
Uncertainty
A
Occurs when there is a lack of information
4
Q
Fixed Cost
A
are those costs that do not change when a business changes its output
5
Q
Total cost
A
Fixed costs plus variable costs
6
Q
Revenue
A
Measured by the number of units sold multiplied by the price/cost
7
Q
Variable costs
A
are the costs that vary directly with the business’s level of output
