Cash Flow Forecast Flashcards
1
Q
2 types of inflows on cash flow forecast
A
Owners capital
Sales
2
Q
5 types of outflows
A
Cost of materials Bills Wages Paying back a loan Water bill
3
Q
What is break even
A
Break even Is when a business is not making any money and not losing any money
4
Q
what 4 lines are found on the break even chart
A
Total cost
Revenue
Fixed cost
Variable costs
5
Q
What 2 lines cross to show break even
A
Revenue and total costs
6
Q
The formula for break even
A
Fixed cost divided by (selling price - variable cost)
Or fixed Fixed cost divided by contribution
7
Q
A variable cost
A
A cost that changes
8
Q
Fixed cost
A
A cost that doesn’t change
