Business Studies 3.3 3.0 / 5 based on 1 rating ? Business StudiesGCSEEdexcel Created by: IzzieCaitlinCreated on: 05-02-13 22:10 What is break-even? Revenue=cost 1 of 19 What does break-even allow companies to understand? The amount of products it needs to sell to cover costs 2 of 19 What will happen if a firm sells less than the break-even? It will make a loss 3 of 19 What is the total revenue? Revenue=amount sold x average price 4 of 19 What is total costs? Total costs=fixed costs + variable costs 5 of 19 What are fixed costs? Costs that stay the same, e.g, rent and salaries 6 of 19 What are variable costs? Costs that change with the amount you use, e.g, raw materials over time 7 of 19 What is the point where revenue and coast meet? The break-even point 8 of 19 What is the place above the break-even point? The margin of safety 9 of 19 What effects the break-even point? Charges in price or costs 10 of 19 What is the formula for calculating break-even? Fixed costs / selling price - variable costs 11 of 19 The selling price - variable costs per unit, is also called what? Contribution 12 of 19 What does break-even analysis help a firm to understand? The past targets and the future targets. It helps it when it wants to launch a new product, start a business and write an affective business plan 13 of 19 What doesn't break-even tell a firm? How many products they are actually going to sell. But it does tell them how many they have to sell 14 of 19 What are two ways to finance a business? Internal and external 15 of 19 What's internal? Money from profit or assets 16 of 19 What's external? Sources of finance outside the business, e.g, loans, share capitals, trade credit 17 of 19 What's an overdraft? A short term loan to draw money from a firm's current account 18 of 19 What are thing to consider when taking out finance? The amount of time the money is needed for; what the money is needed for; the cost of borrowing the money; the risks and the availability of finance 19 of 19
OCR GCSE Business 1 Unit 3: People Revision Notes + How to answer exam questions 5.0 / 5 based on 1 rating
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