Business & Financial Concepts Flashcards
What is a profit centre?
A division of a company that contributes directly to the revenues of the business, usually covering its own costs as a division.
What is a cost centre?
A division of a company that have costs to a business but do not necessarily generate revenue.
Examples include accounting or inventory control.
What is a business process?
A set of activities and tasks performed by resources (employees, machines), to fulfil a task.
Define depreciation.
The reduction in value of an asset over time, due to factors such as time, usage, or technological outdating.
What is an OPEX?
Operating Expense; the ongoing, running costs of a business.
What is a CAPEX?
Capital Expenditure; one-off payments to purchase assets to create future benefits for a business.
What’s the difference between a current- and non-current asset?
Current Assets are cash and assets expected to be converted to cash within a year.
Non-Current Assets are long-term assets/investments expected to be converted to cash in over a year.
What is meant by a Cash Flow?
The movement of cash in and out of an organisation.
What is a KPI?
Key Performance Indicator; a measure of performance to help an organisation define and assess how successful it is, typically to track progress towards specific goals.
