Finance Info Flashcards
What is OPEX?
Operating Expenses, often talked about in margins.
What is SG&A?
Selling, general, and administrative expenses
What is COGS?
Cost of Goods Sold
How do you calculate Total Payroll Expense?
COGS + OPEX
What is Total Fixed Cost?
The sum of all your business fixed costs, used to calculate your company’s break even point and determine the level of revenue or number of unit sales you need to break even and start earning a profit.
What is Variable Cost per Unit?
The sum of all your variable costs divided by the number of units produced, used to calculate your company’s contribution margin per unit and analyze the level of profitability across your various products, lines, customers and geographies.
What is Inventory Holding Cost?
The total cost of carrying inventory in your business, including costs associated with storage, obsolescence and spoilage, waste and inefficiencies, theft, insurance and financing.
What is the Accounts Payable (AP) Carrying Cost?
The total cost of carrying a balance in your supplier accounts, mostly related to the cost of foregone early payment discounts offered.
What is Accounts Receivable (AR) Carrying Cost?
The total cost of extending credit to your customers, including costs associated with processing and collecting AR, financing costs and bad debt costs associated with uncollectible accounts.
What is Average Cost of Debt?
The total interest expense associated with borrowing money, averaged across all your credit facilities and weighted based on their relative proportion in your total borrowed capital.
What is Average Cost of Equity?
The Cost of Equity is a function of the risk free rate offered in your market, as well as the risk premium(s) that would be required by an investor to accept the risk of investing in your business.
What is a SEPA transfer?
Single Euro Payments Area (SEPA), customers can now make cashless euro payments – via credit transfer and direct debit – to anywhere in the European Union, as well as a number of non-EU countries, in a fast, safe and efficient way, just like national payments.
What is Drawdown?
When someone takes an amount of money that has been made available:
What is (AMLD)?
Anti-Money Laundering Directive.
What is Price Volume Mix?
This allows you to determine what has driven revenue increases or decreases between two or more financial periods. This relies on knowing the price of units, and how many units, during the period.
