front 1 Total costs | back 1 Total fixed costs + total variable costs |
front 2 Variable costs | back 2 Cost of one unit × quantity sold |
front 3 Revenue | back 3 Price × quantity |
front 4 Break even point in units | back 4 Fixed costs / ( sales price - variable cost ) |
front 5 Margin of safety | back 5 Actual or budget sales - break even sales |
front 6 Interest ( on loans ) in % | back 6 Total repayment - borrowed amount / borrowed amount ( all × 100) |
front 7 Net cash flow | back 7 Cash inflow ( receipts) - cash outflows in a given period ( payments ) |
front 8 Opening balance | back 8 Closing balance of the previous period |
front 9 Closing balance | back 9 Opening balance + net cash flow |
front 10 Profit | back 10 Total revenue - total costs |
front 11 Gross profit | back 11 Sales revenue - cost of sales |
front 12 Gross profit margin | back 12 Gross profit / sales revenue ( all × 100 ) |
front 13 Net profit | back 13 Gross profit - other operating expenses and interests |
front 14 Net profit margin | back 14 Net profit/ sales revenue ( all × 100 ) |
front 15 Average rate of return | back 15 Average annual profit ( total profit / No. of years )/ cost of investment ( all × 100 ) |
front 16 Percentage growth | back 16 Increase in size / original size ( all × 100 ) |
front 17 Fixed costs | back 17 Costs that don't change as output changes |
front 18 Example of a fixed costs | back 18 Rent / insurance |
front 19 What is a variable cost | back 19 Costs that change as output changes |
front 20 Example of a variable cost | back 20 Ingredients / fuel for delivery van / packaging |
front 21 Cost of sales ( direct costs ) | back 21 Cost directly associated with production |
front 22 Example of a direct cost | back 22 Raw materials |
front 23 Operating expenses ( indirect costs ) | back 23 Costs not directly associated with production |
front 24 Example of an indirect cost | back 24 Administration |
front 25 Uses of financial data | back 25 Analyse the performance of a company Make predictions about the future direction of the companies stock price |
front 26 Limitations of financial data | back 26 Doesn’t give solutions Snapshot of time / doesn't show progression |