BTEC Business Studies Formulas and Keywords Unit 2 Questions with Answers,100% CORRECT

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BTEC Business Studies Formulas and Keywords Unit 2 Questions with Answers Revenue - CORRECT ANSWER The money coming into the business Fixed Costs - CORRECT ANSWER Costs that stay the same V... ariable Costs - CORRECT ANSWER Costs that change with output Total Costs - CORRECT ANSWER = Fixed Costs + Variable Costs Total Variable Costs - CORRECT ANSWER = Variable Cost * Quantity Profit formula - CORRECT ANSWER =Revenue - Total Costs Profit - CORRECT ANSWER Money made by the business Budget - CORRECT ANSWER A financial plan for the future Revenue formula - CORRECT ANSWER = Selling price * quantity sold Break Even - CORRECT ANSWER When a business makes neither a loss nor a profit Break Even formula - CORRECT ANSWER =Fixed costs / Contribution Contribution - CORRECT ANSWER Selling Price - Variable Costs Margin of Safety - CORRECT ANSWER Amount a business sells over its break even point Margin of Safety Formula - CORRECT ANSWER = Quantity Sold - Break Even Income Budget - CORRECT ANSWER Plan the money from sales Expenditure budget - CORRECT ANSWER How much you are spending Profit budget - CORRECT ANSWER How much you expect to make Net Cash Flow - CORRECT ANSWER Total inflows- total outflows Opening Balance - CORRECT ANSWER The closing balance of the previous month Closing Balance - CORRECT ANSWER Opening balance + Net Cash Flow Cash Flow Forecast - CORRECT ANSWER A prediction of cash coming into and out of a business over a period of time Income statement - CORRECT ANSWER a statement for a period of time, usually a year, showing how much profit or loss a business has made Gross Profit - CORRECT ANSWER = Revenue - Costs of Sales Net Profit - CORRECT ANSWER = Gross Profit - Expenses [Show More]

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