Sales, Revenue, & costs
The value of output sold by a business.
What is revenue (or sales revenue)?206
The process of estimating future sales is called this.
What is sales forecasting?219
Break-even occurs when total revenue equals this.
What is total costs?pg222
the amount of cash that the business expects to have at the end of each month.
what is closing balance? pg 226
a financial plan that is agreed in advance.
What is a budget?233
a cost that does not change as a results of a change in output in the shortrun
What is a fixed cost?pg 211
One quantitative method of sales forecasting uses data from the past.
What is time-series analysis?213
The contribution per unit is calculated using this formula.
What is Selling price – Variable cost per unit?221
the degree to which a business is able to meet its debts when they fall due
what is solvency?pg 231
the difference between actual fianancial outcomes and those budgeted.
What is variance?238
Variable costs change in direct proportion to this.
What is output (or production/sales level)?pg208
the habits or behaviours of consumers that determine the goods and services they buy.
What is consumer trends?pg 219
the amount of money left over after variable costs have been subtracted from revenue.
What is contribution?224
the prediction of all expected reciepts and expenses of a business over a future time period which shows the expected cash balance at the end of each month.
What is a cash flow forecast?231
A budget that requires justification of all spending from scratch each year is called this.
What is zero-based budgeting?235
if fixed and variable costs are added together.
what is total cost?209
a business process, assessing the probable outcome using assumptions about the future
what is extrapolation?219
On a break-even chart, this line slopes upward starting from the origin.
What is the total revenue line?223
The difference between cash inflows and cash outflows for the month.
What is net cash flow? 226
If actual spending is greater than the budgeted figure, this type of variance occurs.
What is an adverse variance?236
The formula for average cost is?
What is Total revenue/output?209
Name two components of a time series analysis used in sales forecasting of consumer trends.
What are seasonal variations, fashion, long term trends. pg 216
the range of output over which a profit can be made.
What is margin of safety?223
the following is an example of what?
business activity is subject to external forces that are beyond the control of owners and managers.
What are the limitiations of cash flow forecasts? 231
a departmental manager might have great influence over those co-ordinating and setting budgets.
what is manipulation?238