2.2.2 Financial Planning

0.0(0)
Studied by 0 people
call kaiCall Kai
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
GameKnowt Play
Card Sorting

1/5

encourage image

There's no tags or description

Looks like no tags are added yet.

Last updated 10:28 AM on 5/1/26
Name
Mastery
Learn
Test
Matching
Spaced
Call with Kai

No analytics yet

Send a link to your students to track their progress

6 Terms

1
New cards

two difficulties of sales forecasting

  • future demand uncertain

  • unexpected external shocks

2
New cards

contribution per unit

amount of each unit hat contributes towards fixed costs and profit

3
New cards

break even point

level of output where total costs = total revenue

4
New cards

margin of safety

how much sales can fall before reaching break even

5
New cards

limitations of break even analaysis

  • costs/revenue stay constant

  • assumes everything produced is sold

6
New cards

purpose of a budget

to plan spending and compare actual performance against targets