Chart / Graph Flashcards
What does a Break-even chart include?
Total revenue, total costs, fixed costs.
You can also plot the break-even point, margin of safety and identify where the profit/loss lies.
What does the X axis represent?
Quantity (Units)
What does the Y axis represent?
Sales (£)
How can you identify the break-even point on a graph?
It’s the point at which the TR and TC cost meet.
Total Costs = Total Revenue
How can you identify where the margin of safety line will be drawn?
The distance between the break-even output and the actual amount of sales achieved.
What does the Cash Flow Forecast include?
Cash inflows, Cash Outflows, Total Inflow, Total Outflow, Net Cash Flow, Opening Balance and Closing Balance.
What does a profit and loss account include?
The profit and loss (P&L) statement is a financial statement that summarizes the revenues, costs, and expenses incurred during a specified period.
Source: Investopedia
