revenues,costs and profits/forecasting cash flow Flashcards
1
Q
variable costs
A
changed directly with the number of products made e.g raw materials and labour.
2
Q
variable costs calculation
A
cost of one unit x quantity produced .
3
Q
ways to increase profit
A
lower variable costs
lower fixed costs
increase the sales price
increase the quantity of sales
4
Q
what is the opening balance
A
the amount of money in a business at the start of the month
5
Q
cumulative cash flow
A
the sum of cash that flows into a business over time
6
Q
closing balance
A
the amount of money in a business at the end of the month (net cash flow + opening balance)
7
Q
what impacts cash flow
A
changes in sales/ revenue credit terms changing change in commodity prices seasonality in sales business expansion or extraction
8
Q
insolvent
A
being without sufficient cash the business will become insolvent
