R.H Buis

Question 1

Income budgets

Answer 1

Forecasts the amount of money that will come into the businesses as revenue over a period of time (usually a year)

Question 2

Budget

Answer 2

An estimation of the expenses and revenue over a specified future period of time

Question 3

Expenditure budgets

Answer 3

Predicts the total costs over a period of time (usually a year)

Question 4

PESTLE

Answer 4

Political, economic, sociological, technological, legal, environmental

Question 5

Profit budgets

Answer 5

Uses both the expenditure and income budgets to calculate profited budget (or loss) for the year

Question 6

Actual

Answer 6

Refers to the actual sales and expenditure figures .

Question 7

variance

Answer 7

Refers to the difference between the actual figures and 5ye budgeted figures

Question 8

Adverse variance

Answer 8

Refers to costs that exceed the budgeted expenditure, or less income than predicted in the budgeted income. It is bad

Question 9

Variable costs(direct costs/cost of sales)

Answer 9

Costs that do change with output

Question 10

Fixed costs (indirect costs/overhead)

Answer 10

Costs that do not change with output
Example:rent, salaries,utility bills,

Question 11

Costs (expenditure)

Answer 11

Something a business has to pay for
Example:rent

Question 12

Semi variable cost (semi fixed/mixed cost)

Answer 12

A cost Composed of a mixture of both fixed and variable components.

Question 13

Start up costs

Answer 13

Costs needed to set up the business
Ex:machinery

Question 14

Operating costs (overhead/running costs)

Answer 14

Costs that have to be payed for the day to day running of the business.
Ex:electricity

Question 15

Output

Answer 15

The number of products a business makes.

Question 16

Revenue

Answer 16

The money that comes Into a business

Question 17

Breakeven

Answer 17

When a business has made enough money to cover Costs. There is no profit or loss.

Question 18

Breakeven

Answer 18

When a business has made enough money to cover costs. There is no profit or loss.

Question 19

Total costs

Answer 19

The amount of money a business spends over a certain period of time

Question 20

Profit

Answer 20

The money left over when revenue is more than expenditure .

Question 21

Loss

Answer 21

When expenditure is more than revenue

Question 22

Favorable variance

Answer 22

Refers to less costs than predicted in the budgeted expenditure, or more inco.e than predicted in budgeted income. It is good.

Question 23

Sales

Answer 23

Thus comes from customers that purchase products or services. Thus is the main source of revenue for a business.

Question 24

Leasing

Answer 24

When a business rents out a section of their property or capital equipment.

Question 25

Interest

Answer 25

Either a financial charge or reward by the bank for borrowing or saving money in the bank

Question 26

Profit

Answer 26

The financial reward for the business owner for taking the risk and the money left over when all costs are subtracted from revenue

Question 27

Margin of safety formula

Answer 27

Actually sales-BE point

Question 28

When talking about cash flow don’t

Answer 28

Use profit

Question 29

Recession

Answer 29

A period of temporary economic decline