BTEC Business Studies Formulas and Keywords Unit 2 Questions with Answers
Revenue - CORRECT ANSWER The money coming into the business
Fixed Costs - CORRECT ANSWER Costs that stay the same
Variable Costs - CORR
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BTEC Business Studies Formulas and Keywords Unit 2 Questions with Answers
Revenue - CORRECT ANSWER The money coming into the business
Fixed Costs - CORRECT ANSWER Costs that stay the same
Variable Costs - CORRECT ANSWER Costs that change with output
Total Costs - CORRECT ANSWER = Fixed Costs + Variable Costs
Total Variable Costs - CORRECT ANSWER = Variable Cost * Quantity
Profit formula - CORRECT ANSWER =Revenue - Total Costs
Profit - CORRECT ANSWER Money made by the business
Budget - CORRECT ANSWER A financial plan for the future
Revenue formula - CORRECT ANSWER = Selling price * quantity sold
Break Even - CORRECT ANSWER When a business makes neither a loss nor a profit
Break Even formula - CORRECT ANSWER =Fixed costs / Contribution
Contribution - CORRECT ANSWER Selling Price - Variable Costs
Margin of Safety - CORRECT ANSWER Amount a business sells over its break even point
Margin of Safety Formula - CORRECT ANSWER = Quantity Sold - Break Even
Income Budget - CORRECT ANSWER Plan the money from sales
Expenditure budget - CORRECT ANSWER How much you are spending
Profit budget - CORRECT ANSWER How much you expect to make
Net Cash Flow - CORRECT ANSWER Total inflows- total outflows
Opening Balance - CORRECT ANSWER The closing balance of the previous month
Closing Balance - CORRECT ANSWER Opening balance + Net Cash Flow
Cash Flow Forecast - CORRECT ANSWER A prediction of cash coming into and out of a business over a period of time
Income statement - CORRECT ANSWER a statement for a period of time, usually a year, showing how much profit or loss a business has made
Gross Profit - CORRECT ANSWER = Revenue - Costs of Sales
Net Profit - CORRECT ANSWER = Gross Profit - Expenses
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