Btec Business Unit 2 - Finance For Business 30 Correctly Answered Questions Latest Update

Variable Costs {Ans: Costs that vary depending on the level of output. e.g light, heating, bills etc}Operating Costs (running costs) {Ans: expenses a business has in it's day to day operations. e.g electricity, gas, water bills.}Fixed Costs, Sales Revenue, Variable Costs {Ans: What lines need to be plotted on a Break Even Chart?}Profit {Ans: When revenue (sales) is higher than expenditure (costs).}It would fall because you will need to sell fewer to break even. {Ans: What happens to the break even point if you increase your selling price?}The direct costs associated with making or selling a product or service. {Ans: What are Cost of Sales?}Loss {Ans: When expenditure is higher than revenue (sales).}The money coming into and out of a business? {Ans: What is Cash Flow?}Revenue (sales) {Ans: Number of Sales x Price Per Unit}Break even point will go up. As you have got to sell more to cover the higher costs. {Ans: What happens to the break even point if costs go up?}Sales, Bank Loans, Rents from Property the business owns, Interest received on savings. {Ans: Give two examples of inflows (money coming into the business)}Break Even =