unit 5

estimated difference between cash inflows and cash outflows for the period

• Opening cash balance

• Net cash flow

• credit control

• overtrading

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

• opening cash balance

• cash flow

• closing cash balance

• insolvent

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

• opening cash balance + [cash inflows - cash outflows]

• closing cash balance + (cash inflow -cash outflows)

• Net cash flow divided by opening balance

• Net cash flow divided by closing balance

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

• indirect cost

• marginal cost

• Direct cost

• total cost

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

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

• contribution per unit

• marginal cost

• total cost

• variable cost

Fixed cost divided by contribution per unit

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

• delegated budgets

• flexible budgeting

• zero budgeting

• variance analysis

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

• flexible budgeting

• budgeting

• favourable variance

• adverse variance

a change from the budget that leads to lower planned profit

• adverse variance

• budget holder

• favourable variance

• incremental budgeting