Theme 2 and 3 Flashcards
1
Q
Sales Volume
A
total number of units sold over a period of time
2
Q
Sales Revenue
A
number of units sold x unit price
3
Q
Total variable costs
A
number of units sold x variable costs per unit
4
Q
Total costs
A
fixed costs + variable costs
5
Q
Gross profit
A
sales revenue - cost of sales
6
Q
Operating profit
A
gross profit - overheads
7
Q
net profit
A
operating profit +/- finance costs
8
Q
opening balance
A
previous months closing balance
9
Q
closing balance
A
opening balance +/- finance costs
10
Q
net cash flow
A
total inflows- total outflows
11
Q
break even
A
fixed costs/ contribution per unit
12
Q
contribution per unit
A
selling price per unit- variable cost per unit
13
Q
total contribution
A
contribution per unit x number of units sold
14
Q
margin of safety
A
actual/projected sales volume- break even sales volume
15
Q
budget variance
A
actual - budget
