Vocabulary
Day to day expenses incurred in running the business.
What is Operating Costs
The total amount of money taken in by a business before any deductions.
An account where an employee either defers part of their income into a tax shelter - where it grows tax free.
What is a Retirement Plan
Formula for Profit
What is Revenue-Expenses
Salon brought in $250,000 and had expenses of $75,000. What was the salons profit
What is $175,000
The positive financial gain after all expenses have been subtracted.
Money invested into a business with the expectation of income.
What is capital investment.
A contractual agreement between a landlord and tenant.
What is a rent agreement
Wages should never be more that ____% of gross sales
What is 50%
Salon is 2,100 square feet and it's charged $15 per square foot. What it the yearly rent.
What is $31,500.
Profit that results from selling stocks, bonds or real estate.
What is Capital Gain
A statement at a particular time.
What is an economic condition
a tax determined by the value of the property.
What is Property Tax
This type of price is set by manufactures to promote sales on a given item.
What is deal price
Gross sales is $310,000 and Marketing is estimated at 5%. How much is budgeted for marketing expense?
What is $15,500
Total income before taking taxes or deductions.
What is Gross Income
Wages paid to productive workers who turn out a finished project - ex hairstylists.
What is Wages of technicians.
A decline in the value of assets.
What is depreciation.
Image marketing is also known as
What is Branding
What percentage of your inventory would be left if you sold 3 of the 13 bottles of hairspray.
What is 75%.
Wages paid to employees who do not directly produce income.
What is Nonproducing Laborers
Means "to give permission"
What is a license
The inventory costs of those goods the business has sold during a period of time.
What is Costs of Goods Sold.
This is the actual price on a unit of merchandise
What is Each Price
Towels and linens are estimated at 1% of gross sales. Gross sales for the salon is $225,000. How much is budgeted for Towels and Linens.
What is $2250