Details Title: Accounting and Finace Description: proft,breakeven,sources of finance Total Flash Cards: 17 Created: 12/16/2007 04:07:26		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional Business Flashcards
Cards in this set: Term Definition Term Fixed Costs Definition Are the expenses that do not alter in relation to change in demand or output   Term Variable Costs Definition Ones that varies in direct proportion to change in output, such as raw materials, components, piece labour rate and energy used in production   Term Breakeven analysis Definition Study of the relationship between sales revenue and total costs to discover the point a which profit can be made Term Profit Definition What is left from revenue after costs are deducted   Term Total Costs Definition Are fixed costs added together Term Sales Revenue Definition Is the revenue of sales made within a trade period Term Overheads Definition Are costs that are not generated directly by the production process Term Direct Costs Definition Any costs which can be allocated percisley to a cost centre and which varies in direct proportion to activity or output Term Break-even Chart Definition A line graph showing total revenue and cost at all possable level of output, demand Term  Break-even Point  Definition The intersection of total revenue and total costs on a break even chart Term Break-even Output  Definition Is the level of output at which a firm's sales generate enough revenue to cover all costs of production Term Contribution Definition Is the total revenue minus total variable cost Term Contribution Per Unit Definition Is the amount each unit sold contributes towards couering the fixted overheads of the busuniess Term Cashflow Definition Is the sum of cash inflows to the orgaisation minus the sum of cash outflows over a specific period Term Cashflow Managment Definition Controling cash inflows and cash outflows so to maximuise cash requirements Term Definition