AQA A level Business unit 5

The flow of cash into and out of the business

Something outside the firms control that can prevent it achieving its objectives

When th business is fully utilising all it's assets

Groups with an interest you know we in the success or failure of a firms decision and actions

Using software that allows changing demand and supply levels to set changing prices

Paying workers per unit they make

Profit as a percentage of sales revenue

cost that don’t change in accordance to output

All the costs of producing a specific output level

All the variables costs of productising a specific output level.

The costs of producing one unit

Fixed cost/contribution per unit

Selling price - variable costs per unit

Sales volume - break even

Estimating future monthly cash inflows and outflows

Obtaining part payment of the amount owed From a factoring company

Short term borrowing from a bank. The business only borrows as much as it needs to cover

(Gross profit/sales revenue) *100

(Operating profit/sales)*100

(Net profit(before tax)/sales)*100

(Operating profit/capital employed)*100

((Net return - investment cost)/original investment)*100

Increase selling price

Increase output

reduce fixed and variable cost (e.g cheaper packaging)

Cut down on cost

delay payments

cut back on expansion plans

Reduce fixed cos

reduce variable cost

increase price on product

Leasing \n Hire purchases \n Government finance \n Trade credit

Bank loan - Short-term

Overdraft - Short-term \n Debt factoring - Short-term \n Crowdfunding - Short term \n Venture capital - Long-term \n Share capital/equity - Long-term \n Mortgages - Long-term \n Debentures - Long-term

Personal sources \n Retained profits \n Share capital

The cash being transferred into and out of the business

An estimate of income and expenditure for a set period of time

The difference between an actual amount and a pre-determined standard amount or the amount budgeted.

a spending plan based on income and expenses

profit, income, expenditure

predict how much business will spend over a period of time

predicts how much money will come in from sales

Income budget - expenditure budget

An amount included in a budget to cover any unexpected issues

makes sure businesses doesn’t spend money they don’t have

hard for a new business as they have no past data