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Business > Key term definitions 2.2 > Flashcards

Key term definitions 2.2 Flashcards

1
Q

what is the definition of consumer income?

A

the amount of income remaining after taxes and expenses have been deducted from wages

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2
Q

what is the definition of consumer trends?

A

the habits or behaviours of consumers that determine the goods and services they buy

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3
Q

what is the definition of economic growth?

A

the rise in output of an economy as measured by the growth in Gross Domestic Product GDP

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4
Q

what is the definition of economic variables?

A

measures within the economy which have effects on business and consumers (unemployment, inflation, exchange rates)

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5
Q

what is the definition of extrapolation?

A

forecasting future trends based on past data

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6
Q

what is the definition of forecasting?

A

a business process assessing the probable outcome using assumptions about the future

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7
Q

what is the definition of sales forecast?

A

projection of future sales revenue often based on previous sales data

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8
Q

what is the definition of time series data?

A

a method that allows a business yo predict future levels from past figures

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9
Q

what is the definition of average cost or unit cost?

FORMULA

A

the cost of producing 1 unit.

total cost/(divide by)output

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10
Q

what is the definition of fixed cost?

A

a cost that does not change as a result of a change in output in the short run

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11
Q

what is the definition of long run?

A

the time period where all factors of production are variable

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12
Q

what is the definition of profit?

FORMULA

A

the difference between total costs and total revenue. it can be negative
total cost - total revenue=profit

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13
Q

what is the definition of sales revenue?

FORMULA

A

the value of output sold in a particular time period

price X quantity of output

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14
Q

what is the definition of sales volume?

A

the quantity of output sold in a particular time period

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15
Q

what is the definition of semi-variable cost?

A

a cost that consists of both fixed and variable elements

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16
Q

what is the definition of short run?

A

the time period where at least 1 factor of production is fixed

17
Q

what is the definition of total cost?

A

the entire cost of producing a given level of output

18
Q

what is the definition of total revenue?

A

the amount of money the business receives from selling output

19
Q

what is the definition of variable cost?

A

a cost that rises as output rises

20
Q

what is the definition of break-even?

A

when a business generates just enough revenue to cover its total costs

21
Q

what is the definition of break-even chart?

A

a graph containing the total cost and total revenue lines illustrating the break-even output

22
Q

what is the definition of break-even output?

A

the output a business needs to produce so that its total revenue and total costs are the same

23
Q

what is the definition of break-even point?

A

the point at which total revenue ans total costs are the same

24
Q

what is the definition of contribution?

A

the amount of money left over after variable costs have been subtracted from revenue. the money contributes towards fixed costs and profit

25
Q

what is the definition of margin and safety?

A

the range of output between the break-even level and the current level of output over which a profit is made

26
Q

what is the definition of budget?

A

a quantitative economic plan prepared and agreed in advance

27
Q

what is the definition of budgetary control?

A

a business system that involves making future plans comparing the actual results with the planned results and then investigating the causes of any differences

28
Q

what is the definition of historical figures?

A

quantitative information based on past trading records

29
Q

what is the definition of production cost budget?

A

a firm’s planned production costs for a future period of time

30
Q

what is the definition of sales budget?

A

a firm’s planned sales for a future period of time-can be measured in terms of volume or revenue

31
Q

what is the definition of variance?

A

the difference between actual financial outcomes and those budgeted

32
Q

what is the definition of variance analysis?

A

the process of calculating variances and attempting to identify their causes

33
Q

what is the definition of zero-based budgeting or zero budgeting?

A

a system of budgeting where no money is allocated for costs or spending unless they can be justified by the fundholder (given zero value)

Business (22 decks)

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