Financial terms and calculations common mistakes

Common mistakes

• Costs, revenue, profit and loss common mistake 1

  Giving a vague answer instead of directly addressing: Distinguish variable costs, fixed costs and total costs..

  Fix itAnswer by clearly explaining how to distinguish variable costs, fixed costs and total costs..

• Costs, revenue, profit and loss common mistake 1

  Giving a vague answer instead of directly addressing: Explain revenue, costs, profit and loss..

  Fix itAnswer by clearly explaining how to explain revenue, costs, profit and loss..

• Average rate of return common mistake 1

  Giving a vague answer instead of directly addressing: Explain investment projects such as investment in machinery, buildings and vehicles..

  Fix itAnswer by clearly explaining how to explain investment projects such as investment in machinery, buildings and vehicles..

• Average rate of return common mistake 1

  Giving a vague answer instead of directly addressing: Calculate average rate of return for business investment projects..

  Fix itAnswer by clearly explaining how to calculate average rate of return for business investment projects..

• Break-even common mistake 1

  Giving a vague answer instead of directly addressing: Explain break-even output..

  Fix itAnswer by clearly explaining how to explain break-even output..

• Break-even common mistake 1

  Giving a vague answer instead of directly addressing: Interpret break-even charts..

  Fix itAnswer by clearly explaining how to interpret break-even charts..

• Break-even common mistake 1

  Giving a vague answer instead of directly addressing: Identify break-even level of output and margin of safety from a break-even chart..

  Fix itAnswer by clearly explaining how to identify break-even level of output and margin of safety from a break-even chart..

• Break-even common mistake 1

  Giving a vague answer instead of directly addressing: Evaluate the value of break-even analysis to a business..

  Fix itAnswer by clearly explaining how to evaluate the value of break-even analysis to a business..