Rando Mix Flashcards
1
Q
Why is it important for a company to depreciate their non current assests
A
Non curret assests dont last forever
-helps determin profit accuratly
Helps asses the portion of non current assets used in the generation of revenue
2
Q
Revenue =
A
Sales
3
Q
Sales=
A
Revenue
4
Q
What are the importance of cash budgets
A
- finance needs
- when to time capital expenditure
- the impact on credit terms on cash flow
- impact on working capitial managment on cash flow
5
Q
How do you calculate contribution per unit
A
Selling price per unit- variable cost per unit
6
Q
How do you find the break even point
A
Fixed cost / contribution per unit
7
Q
How do you calculate the margin of saftey
A
Demand- break even (points in units) / demand
