Flashcard Set Preview
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| 1 |
Variance
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The difference between a budgeted figure and the actual figure
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Variance Analysis
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Is the comparison by an organisation of its actual performance with its expected budgeted performance...
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Favourable Analysis
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This is a change from a budgeted figure that leads to higher than expected profits
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Adverse Variance
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This is a change from a budgeted figure that leads to lower than expected profits
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Creditors
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Suppliers owed money by the business - purchases have been made on credit.
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Credit Control
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The monitoring of debts to ensure that credit periods are not exceeded
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Bad Debt
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Unpaid customer bills that are now very unlikely to ever be paid.
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Overtrading
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Expanding a business rapidly without obtaining all of the necessary finance so that a cash...
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Profit margin
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The profit made as a proportion of sales revenue.
Net profit.Net profit = sales revenue x...
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gross profit
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Gross profit = Sales Revenue - Variable Costs(ignores fixed costs)
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net profit
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Net profit = Sales Revenue - Total CostsTotal Costs = fixed + variable costs
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Return of Capital
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Net profit/Capital invested x 100
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