BTEC BUSINESS

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Fixed cost
business costs, such as rent, that are constant whatever the amount of goods produced.
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What is a variable cost?
a cost that varies with the level of output.
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What is the formula for calculating total costs?
The formula to calculate total cost is the following: TC (total cost) = TFC (total fixed cost) + TVC (total variable cost).
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What is the formula for calculating revenue?
Sales revenue is generated by multiplying the number of a product sold by the sales amount using the formula: Sales Revenue = Units Sold x Sales Price
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What does the break even point show?
The break-even point determines the amount of sales needed to achieve a net income of zero. It shows the point when a company's revenue equals total fixed costs plus variable costs, and its fixed costs equal the contribution margin.
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What is the formula for calculating the break even point?
To calculate break-even point based on units: Divide fixed costs by the revenue per unit minus the variable cost per unit. ... The contribution margin is calculated by subtracting variable costs from the price of a product. This amount is then used t
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What is budgeting?
the purpose of budgeting includes the following three aspects: A forecast of income and expenditure (and thereby profitability) A tool for decision making. A means to monitor business performance
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Name the two types of budgets a business can set
the operating or current budget, the capital or investment budget, and the cash or cash flow budget.
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Start-up cost
money spent on a business before it starts trading
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Fixed costs
expenditure that does not change depending on the number of good produced or sold
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Variable costs
costs which very according to number of good produced or sold
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Total costs
Fixed costs + Variable costs
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Revenue
selling price x number of goods sold`
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Other cards in this set

Card 2

Front

a cost that varies with the level of output.

Back

What is a variable cost?

Card 3

Front

The formula to calculate total cost is the following: TC (total cost) = TFC (total fixed cost) + TVC (total variable cost).

Back

Preview of the back of card 3

Card 4

Front

Sales revenue is generated by multiplying the number of a product sold by the sales amount using the formula: Sales Revenue = Units Sold x Sales Price

Back

Preview of the back of card 4

Card 5

Front

The break-even point determines the amount of sales needed to achieve a net income of zero. It shows the point when a company's revenue equals total fixed costs plus variable costs, and its fixed costs equal the contribution margin.

Back

Preview of the back of card 5
View more cards

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whats an organisation structure for a charity

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