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Business Studies

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on 21 November 2013

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Transcript of Business Studies

Business Studies
Fixed costs
The things that don't change. (Indirect)
Variable costs
The costs that change depending on the products that are sold
Start-up costs
The money you invest to start up a business.
Examples:
Tills, premises, shelves and advertising before opening

Total costs
Formula:

Fixed Costs + Variable costs
Examples:
Rent , Bills, Staff wages, insurance
Examples:

Packaging and flavourings
Breakeven
When the total costs match total revenue.
You don't make a profit or a loss.
How much more money you need to make a profit.
Formula
Total costs = Total revenue
Advantages and disadvantages:
You know you've made a profit or breakeven.
You don't know whether you have made a profit or breakeven.
Cash flow forecast
Full transcript