BTEC Level 3 Unit 7 – Business Decision
Making Formulas Explained 2026
Net Cash Flow (Cash Flow Forecast) - ANSWER ✔✨---= Total Income (inflows) - Total Expenses
(Outflows)
Closing Balance (Cash Flow Forecast) - ANSWER ✔✨---= Opening Balance + Net Cash Flow
Total Cost - ANSWER ✔✨---= Fixed Costs + Variable Costs
Cost per Unit (Average Total Cost) - ANSWER ✔✨---= Total Cost / Output
Variable Cost per Unit - ANSWER ✔✨---= Total Variable Cost / Output
Total Variable Cost - ANSWER ✔✨---= Variable Cost per Unit x Output
Revenue - ANSWER ✔✨---= Price x Quantity Sold
Making Formulas Explained 2026
Net Cash Flow (Cash Flow Forecast) - ANSWER ✔✨---= Total Income (inflows) - Total Expenses
(Outflows)
Closing Balance (Cash Flow Forecast) - ANSWER ✔✨---= Opening Balance + Net Cash Flow
Total Cost - ANSWER ✔✨---= Fixed Costs + Variable Costs
Cost per Unit (Average Total Cost) - ANSWER ✔✨---= Total Cost / Output
Variable Cost per Unit - ANSWER ✔✨---= Total Variable Cost / Output
Total Variable Cost - ANSWER ✔✨---= Variable Cost per Unit x Output
Revenue - ANSWER ✔✨---= Price x Quantity Sold
