Btec Business Revision Questions
with Guaranteed Pass Solutions 2026
Updated.
Breakeven - Answer When revenue and expenditure are the same. there is no profit or loss
variable costs - Answer raw materials, change as output increases
margin of safety - Answer is the amount by which sales would have to fall before the break-
even point is reached
total costs - Answer fixed costs plus variable costs
break-even point - Answer when a business has made enough money through product sales
to cover the cost of making the product
selling price - Answer total revenue divided by maximum number of products
increasing the price - Answer break even point falls
reduce the price - Answer break even point becomes higher
break even analysis - Answer planning tool that helps businesses to make the right decisions
and increase their chances of success
benefits of break even analysis - Answer business knows the fixed and variable costs linked
to a product.
the business can set the best price for a product.
it allows the business to set a margin of safety.
risks of ignoring breakeven analysis - Answer the business does not know the costs of
production and running costs.
the business does not know how many items it must sell to make a profit.
the business may make a loss without realising or knowing why.
break even point will change - Answer if costs change or if the selling price changes
, if costs fall - Answer the breakeven point is lower so the business makes a profit
the lower the breakeven point - Answer the fewer the sales needed to make a profit
total sales revenue formula - Answer number of sales times price per unit
to make a profit - Answer revenue must be higher than expenditure
profit formula - Answer revenue take away expenditure
netflow/outflow formula - Answer inflows take away outflows
net inflow - Answer increases money already in the bank
net outflow - Answer reduces the money already in the bank
improving inflows - Answer chase up late payments.
avoid giving credit to unknown customers.
give discounts for early payment.
improving outflows - Answer delay some payments.
reduce stock levels.
make cutbacks to reduce expenditure.
cash flow forecasting - Answer planning tool, it helps businesses avoid the risk of serious
money problems and to plan for success
benefits of cash flow forecasting - Answer expensive items can be bought at the best time.
the timing of inflows and outflows is known.
surplus cash can be invested.
risks of not forecasting cash flow - Answer late inflows may not be identified.
there may not be enough cash to pay for bills or wages.
the business may run out of money and have to cease trading.
with Guaranteed Pass Solutions 2026
Updated.
Breakeven - Answer When revenue and expenditure are the same. there is no profit or loss
variable costs - Answer raw materials, change as output increases
margin of safety - Answer is the amount by which sales would have to fall before the break-
even point is reached
total costs - Answer fixed costs plus variable costs
break-even point - Answer when a business has made enough money through product sales
to cover the cost of making the product
selling price - Answer total revenue divided by maximum number of products
increasing the price - Answer break even point falls
reduce the price - Answer break even point becomes higher
break even analysis - Answer planning tool that helps businesses to make the right decisions
and increase their chances of success
benefits of break even analysis - Answer business knows the fixed and variable costs linked
to a product.
the business can set the best price for a product.
it allows the business to set a margin of safety.
risks of ignoring breakeven analysis - Answer the business does not know the costs of
production and running costs.
the business does not know how many items it must sell to make a profit.
the business may make a loss without realising or knowing why.
break even point will change - Answer if costs change or if the selling price changes
, if costs fall - Answer the breakeven point is lower so the business makes a profit
the lower the breakeven point - Answer the fewer the sales needed to make a profit
total sales revenue formula - Answer number of sales times price per unit
to make a profit - Answer revenue must be higher than expenditure
profit formula - Answer revenue take away expenditure
netflow/outflow formula - Answer inflows take away outflows
net inflow - Answer increases money already in the bank
net outflow - Answer reduces the money already in the bank
improving inflows - Answer chase up late payments.
avoid giving credit to unknown customers.
give discounts for early payment.
improving outflows - Answer delay some payments.
reduce stock levels.
make cutbacks to reduce expenditure.
cash flow forecasting - Answer planning tool, it helps businesses avoid the risk of serious
money problems and to plan for success
benefits of cash flow forecasting - Answer expensive items can be bought at the best time.
the timing of inflows and outflows is known.
surplus cash can be invested.
risks of not forecasting cash flow - Answer late inflows may not be identified.
there may not be enough cash to pay for bills or wages.
the business may run out of money and have to cease trading.
