Edexcel A Level Business - Theme 2.2 Questions with Complete Solutions

Sales forecast - Projection of future sales revenue, often based on previous sales data Consumer trends - The habits or behaviours of consumers that determine the goods and services they buy Consumer income - The amount of income remaining after taxes and expenses have been deducted from wages / salaries Economic variables - Measures within the economy which have effects on business and consumers. Examples include unemployment, inflation and exchange rates Economic growth - The rise in output of an economy as measured by the growth in GDP usually as a percentage Extrapolation - Forecasting future trends based on past data Fixed cost - A cost that does not change as a result of a change in output in the short run Variable cost - A cost that rises as output rises Total cost - The entire cost of producing a given level of output. Fixed + variable. Sales revenue - The value of output sold in a particular time period. It is calculated by price x quantity of output Sales volume - The quantity of output sold in a particular time period Profit - The difference between total costs and total revenue. It can be negative (this is called 'loss').