Topic 3. Business Idea Into Practice Flashcards
Define sales volume
The number of items or products or services sold over a period of time
Define sales turnover
The amount of income received by selling goods or services over a period if time.
Define fixed costs
Costs that do not vary with the output produces. E.g. Rent,business rated, advertising costs
What is the TOTAL COSTS?
All the costs of a business; equal to fixed costs and variable costs
Define variable costs
The costs which changes directly with the number if products made by a business eg cost of raw materials
Define profit
When the revenue of a business are greater than its costs over a period of time
Define loss
When the revenues if a business is greater than costs over a period of time
Define cash flow
The money going into and out of a business
What is an inflow?
Receipts
Define outflow
Payments
Define NET CASH FLOW
The receipts of a business minus it’s payments.
Define insolvency
When a business can no longer pay it’s debts
What is a cash flow forecast?
A prediction of the money that will flow into a business over a period of time.
What is an opening balance?
The amount of money in a business at the start of a month
What is a cumulative cash flow?
The sum Of money that flows in a business over time
