A level Business 2.2 Financial Planning

(a)   is the quantity of output sold in a particular time period.

What is the formula for revenue?

• Price x Variable costs

• Sales volume x price

• Turnover - total costs

• Income - cost of goods

(a)   is a projection of future sales revenue, often based on previous sales data.

What are businesses looking for when looking at a time series analysis for sales forecasting?

• A Trend

• Seasonal Fluctuations

• Cost fluctuations

• Cyclical Fluctuations

• Random fluctuations

Which of these is not a benefit of sales forecasting?

• Inform cash-flow forecasts and give the business a clear idea of what cash inflows will be, so that finances can be managed.

• Informs breakeven analysis and give the business a clear idea of how many they need to sell to breakeven.

• Allow the business to plan orders of supplies and components. Sales forecasts can help build relationships with suppliers.

• Enable the business to ensure it has the correct staffing levels for the projected sales.

What is the formula for total costs?

• Fixed costs + Variable costs

• Fixed costs x Variable costs

• Fixed costs + Variable cost per unit

• Fixed costs / Variable cost

Which of these is a fixed cost?

• Inventory

• Raw materials

• Wages (paid per piece)

• Salary

Which of these is a semi-variable cost?

• Salary

• Electricity

• Interest repayments

• Rent

Which of these is a variable cost?

• Rent

• Insurance payments

• Miscellaneous items

• Inventory

What is the formula for profit?

• Total output / total costs

• Revenue x selling price

• Sales Income - Total costs

• Fixed costs / (Selling price - variable cost per unit)