Topic study hub
Financial terms and calculations
Study financial terminology and calculations used to support business investment and break-even decisions.
8
Objectives
10
Flashcards
10
Questions
90 min
Study time
AqaGcseBusinessFinance
Choose a revision tool
Start revising Financial terms and calculations
Syllabus checklist
What you need to know
8 objective pages available
Costs, revenue, profit and loss2 objectives
- Distinguish variable costs, fixed costs and total costs.
- Explain revenue, costs, profit and loss.
Average rate of return2 objectives
- Explain investment projects such as investment in machinery, buildings and vehicles.
- Calculate average rate of return for business investment projects.
Break-even4 objectives
- Explain break-even output.
- Interpret break-even charts.
- Identify break-even level of output and margin of safety from a break-even chart.
- Evaluate the value of break-even analysis to a business.
Key terms
variable costsfixed costsrevenueprofitinvestmentmachineryaverage rate of returnbreak-even outputExplainbreak-even chartInterpretmargin of safety
Exam tips
- Costs, revenue, profit and loss exam tip 1: Use precise subject-specific vocabulary when you explain how to distinguish variable costs, fixed costs and total costs..
- Costs, revenue, profit and loss exam tip 1: Use precise subject-specific vocabulary when you explain how to explain revenue, costs, profit and loss..
Common mistakes
- Costs, revenue, profit and loss common mistake 1: Answer by clearly explaining how to distinguish variable costs, fixed costs and total costs..
- Costs, revenue, profit and loss common mistake 1: Answer by clearly explaining how to explain revenue, costs, profit and loss..
Practice preview
- PixelPrint serves small retailers while taking a loan; the case evidence includes capacity utilisation of ?8,033, sales of 143 units, and a 26% change in costs or demand. Which option best applies Distinguish variable costs, fixed costs and total costs?
- MetroMove serves small retailers while taking a loan; the case evidence includes capacity utilisation of ?10,962, sales of 592 units, and a 41% change in costs or demand. Which option best applies Distinguish variable costs, fixed costs and total costs?
- CraftCrate serves commuters while opening a second outlet; the case evidence includes net profit margin of ?8,607, sales of 207 units, and a 42% change in costs or demand. Which option best applies Distinguish variable costs, fixed costs and total costs?
Continue by objective
Objectives are grouped by subtopic so students can jump straight to the exact skill they want to revise.
Related topics