Theme 2.2 Flashcards
1
Q
Sales forecasting
A
Predicting future sales volume and values
2
Q
Difficulties of sales forecasting
A
Pastor is not clear indication of future
Lack of perfect information
3
Q
Contribution per unit
A
Amount of money each units sold contribute towards fixed costs once break even has been achieved
4
Q
Break even analysis
A
I didn’t find the number of units necessary to achieve an equilibrium where total costs equal total revenue
5
Q
Budgets
A
amount of money set by business to be achieved in a period of time
6
Q
What is the purpose of budgeting
A
Providing a quantifiable target
Motivate budget holders
Helps with planning and forecasting and decision-making
7
Q
Friends between favourable and adverse variance
A
Favourable has a positive impact on profit
Adverse has a negative impact on profits
