unit 5

Front

estimated difference between cash inflows and cash outflows for the period

Back

Net cash flow

Front

cash held by the business at the end of the month, which becomes next month's opening balance

Back

closing cash balance

Front

closing cash balance at the end of the month is calculated by

Back

opening cash balance + [cash inflows - cash outflows]

Front

these costs can be clearly identified with each unit of production and can be allocated to a cost centre

Back

Direct cost

Front

costs that cannot be identified with a unit of production or allocated accurately to a cost centre

Back

Indirect cost

Front

the price of a product less the direct (variable) costs of producing it

Back

contribution per unit

Front

Fixed cost divided by contribution per unit

Back

break even level of output

Front

calculation of the differences between budgets and actual figures, and analysis of the reasons for such differences

Back

variance analysis

Front

a change from the budget that leads to higher than planned profit

Back

favourable variance

Front

a change from the budget that leads to lower planned profit

Back

adverse variance