BTEC Business - Finance
questions and answers
Margin of safety - answer The difference between the target or actual
sales and the break even point.
Cashflow - answer The movement of money into and out of a business as
goods are bought and sold.
Costs - answer An amount that must be paid or spent to buy or obtain
something. The effort, loss or sacrifice necessary to achieve or obtain
something.
Profit - answer A financial gain, esp. the difference between the amount
earned and the amount spent in buying, operating, or producing
something.
Break-even - answer Sales cover costs without making any profit.
Fixed Costs - answer Costs that do not vary with the quantity of output
produced.
Variable Costs - answer Costs that vary with the quantity of output
produced.
Running Costs - answer Costs paid out at regular intervals to keep the
business running.
Start up Costs - answer The expenses a firm must pay before it can begin
to produce and sell goods.
questions and answers
Margin of safety - answer The difference between the target or actual
sales and the break even point.
Cashflow - answer The movement of money into and out of a business as
goods are bought and sold.
Costs - answer An amount that must be paid or spent to buy or obtain
something. The effort, loss or sacrifice necessary to achieve or obtain
something.
Profit - answer A financial gain, esp. the difference between the amount
earned and the amount spent in buying, operating, or producing
something.
Break-even - answer Sales cover costs without making any profit.
Fixed Costs - answer Costs that do not vary with the quantity of output
produced.
Variable Costs - answer Costs that vary with the quantity of output
produced.
Running Costs - answer Costs paid out at regular intervals to keep the
business running.
Start up Costs - answer The expenses a firm must pay before it can begin
to produce and sell goods.
