231 terms in Topic2
Financial Planning
Technique determining minimum sales needed to cover all costs.
Managing Business Activities
Financial Planning
The exact number of sales needed to cover all costs — neither profit nor loss.
Managing Business Activities
Financial Planning
Graph showing relationship between sales volume, costs, revenue, profit.
Managing Business Activities
Financial Planning
Financial plan allocating resources for specific period (usually year).
Managing Business Activities
Financial Planning
Monitoring actual performance against budgets; taking corrective actions.
Managing Business Activities
Financial Planning
Process of creating budgets; planning financial resources.
Managing Business Activities
Financial Planning
Financial plan showing anticipated cash inflows/outflows.
Managing Business Activities
Financial Planning
Movement of money in/out of business.
Managing Business Activities
Financial Planning
Projection of future cash movements over period (monthly, quarterly).
Managing Business Activities
Financial Planning
Key factors changing cash-flow: sales volume, payment terms, seasonal variation, supplier payments, capital spending, lo
Managing Business Activities
Financial Planning
Insufficient cash to meet obligations despite profitability.
Managing Business Activities
Financial Planning
Competitor pricing, promotion, product, distribution affecting demand.
Managing Business Activities
Financial Planning
How much each unit sold contributes towards covering fixed costs (and then profit).
Managing Business Activities
Financial Planning
Contribution as percentage of sales price.
Managing Business Activities
Financial Planning
How costs change with activity levels.
Managing Business Activities
Financial Planning
Classification of business costs.
Managing Business Activities
Financial Planning
Expenses incurred making products: materials, direct labor, manufacturing overhead.
Managing Business Activities
Financial Planning
(covered in 1.3).
Managing Business Activities
Financial Planning
**Fixed costs:** unchanged by activity (rent, salaries, insurance). **Variable costs:** change with activity (materials,
Managing Business Activities
Financial Planning
Factors affecting demand forecasts: consumer trends, economic factors, competitor actions, seasonality, marketing.
Managing Business Activities
Financial Planning
Macro-economic factors affecting demand: GDP growth, unemployment, inflation, interest rates, exchange rates.
Managing Business Activities
Financial Planning
Expenses unchanged by production/sales volume.
Managing Business Activities
Financial Planning
Predicting future sales based on: historical data, market analysis, trends, competitor actions, planned marketing.
Managing Business Activities
Financial Planning
Setting budgets based on previous year's actual figures, adjusted for expected changes.
Managing Business Activities
Financial Planning
How many extra sales you have above break-even — your cushion against disaster.
Managing Business Activities
Financial Planning
Income from selling products/services.
Managing Business Activities
Financial Planning
Prediction of future sales volume/value.
Managing Business Activities
Financial Planning
Income from product/service sales.
Managing Business Activities
Financial Planning
Quantity of products sold in period.
Managing Business Activities
Financial Planning
Costs with both fixed and variable components.
Managing Business Activities
Financial Planning
Expenses changing with production/sales volume.
Managing Business Activities
Financial Planning
Building budgets from zero; justifying each expense without reference to previous budgets.
Managing Business Activities
Financial Planning
(Liquid Capital Ratio).
Managing Business Activities
Financial Planning
(Statement of Financial Position).
Managing Business Activities
Financial Planning
Time from cash outlay for materials to cash receipt from sales.
Managing Business Activities
Financial Planning
Actual amount of cash available to business.
Managing Business Activities
Financial Planning
Business assets convertible to cash within 12 months.
Managing Business Activities
Financial Planning
Business obligations due within 12 months.
Managing Business Activities
Financial Planning
Liquidity measure comparing current assets to current liabilities.
Managing Business Activities
Financial Planning
Average time to collect payment from customers.
Managing Business Activities
Financial Planning
Strategies for managing business borrowing.
Managing Business Activities
Financial Planning
Profit; bottom-line income after expenses.
Managing Business Activities
Financial Planning
Situation where business has insufficient funds to meet obligations.
Managing Business Activities
Financial Planning
Using debt financing to increase returns on equity.
Managing Business Activities
Financial Planning
Overall financial health of business at point in time.
Managing Business Activities
Financial Planning
Relationship between financial figures measuring performance/position.
Managing Business Activities
Financial Planning
Documents reporting financial position/performance: balance sheet, income statement, cash-flow statement.
Managing Business Activities
Financial Planning
Measure of financial leverage; proportion of borrowing vs equity.
Managing Business Activities
Financial Planning
Sales minus cost of goods sold (direct production costs).
Managing Business Activities
Financial Planning
Gross profit as percentage of revenue.
Managing Business Activities
Financial Planning
(Profit & Loss Account).
Managing Business Activities
Financial Planning
Inability to pay debts when due.
Managing Business Activities
Financial Planning
(Stock).
Managing Business Activities
Financial Planning
Ability to service debt from profits.
Managing Business Activities
Financial Planning
Ability to meet short-term financial obligations; having cash/convertible assets available.
Managing Business Activities
Financial Planning
Financial ratio measuring ability to pay short-term debts.
Managing Business Activities
Financial Planning
(Profit for the Year).
Managing Business Activities
Financial Planning
Net profit as percentage of revenue.
Managing Business Activities
Financial Planning
Profit from normal business operations (excluding interest/tax).
Managing Business Activities
Financial Planning
Operating profit as percentage of revenue.
Managing Business Activities
Financial Planning
(Accounts Payable).
Managing Business Activities
Financial Planning
Ability to generate profit; degree of profit earned.
Managing Business Activities
Financial Planning
(see Income Statement).
Managing Business Activities
Financial Planning
Examining financial statement ratios for insights.
Managing Business Activities
Financial Planning
Profitability relative to capital invested.
Managing Business Activities
Financial Planning
Profitability relative to shareholder investment.
Managing Business Activities
Financial Planning
Profit/gains realized from investment/capital employed.
Managing Business Activities
Financial Planning
(see Income Statement).
Managing Business Activities
Financial Planning
(see Balance Sheet).
Managing Business Activities
Financial Planning
Long-term ability to meet all financial obligations.
Managing Business Activities
Financial Planning
(Inventory Valuation).
Managing Business Activities
Financial Planning
Current assets minus current liabilities; funds for day-to-day operations.
Managing Business Activities
Financial Planning
Strategies optimizing current assets/liabilities for operational efficiency.
Managing Business Activities
Financial Planning
Removing asset from books when deemed worthless.
Managing Business Activities
Financial Planning
Using technology/machines for tasks traditionally done by humans.
Managing Business Activities
Financial Planning
Manufacturing specified quantity of identical products in groups.
Managing Business Activities
Financial Planning
Process step limiting overall production capacity.
Managing Business Activities
Financial Planning
Spare inventory held to buffer against demand variations/supply disruptions.
Managing Business Activities
Financial Planning
Plans/processes ensuring organization continues operating during disruptions.
Managing Business Activities
Financial Planning
Maximum production level in period.
Managing Business Activities
Financial Planning
Percentage of available capacity actually used.
Managing Business Activities
Financial Planning
(Cellular Manufacturing).
Managing Business Activities
Financial Planning
(Kaizen).
Managing Business Activities
Financial Planning
Inspection/testing during/after production ensuring standards.
Managing Business Activities
Financial Planning
Rising long-run average costs despite increased production.
Managing Business Activities
Financial Planning
Achieving output with minimum resources.
Managing Business Activities
Financial Planning
(see Flexible workforce - 1.4).
Managing Business Activities
Financial Planning
Outside factors affecting production: supplier availability, energy prices, labor availability, regulations, technology
Managing Business Activities
Financial Planning
Percentage of products/services failing to meet standards.
Managing Business Activities
Financial Planning
(Continuous Production).
Managing Business Activities
Financial Planning
Predicting future production needs based on: demand forecasts, inventory levels, supplier lead times.
Managing Business Activities
Financial Planning
(Intangible Asset).
Managing Business Activities
Financial Planning
(Maslow - see 1.4).
Managing Business Activities
Financial Planning
Business/process relying heavily on human labor.
Managing Business Activities
Financial Planning
Unused production capacity; output below potential.
Managing Business Activities
Financial Planning
Costs of keeping inventory: storage, insurance, obsolescence, deterioration, financing.
Managing Business Activities
Financial Planning
How many times inventory is sold/replaced per period.
Managing Business Activities
Financial Planning
(Quality - already covered).
Managing Business Activities
Financial Planning
Manufacturing custom products one at a time or in small quantities.
Managing Business Activities
Financial Planning
See Job Production.
Managing Business Activities
Financial Planning
(Continuous Improvement).
Managing Business Activities
Financial Planning
Focused improvement activities over short period (days/weeks).
Managing Business Activities
Financial Planning
(already covered - see 1.4).
Managing Business Activities
Financial Planning
Production system eliminating waste; maximizing value.
Managing Business Activities
Financial Planning
Regular servicing of equipment to prevent breakdown.
Managing Business Activities
Financial Planning
Labor time measurement; employee hours worked.
Managing Business Activities
Financial Planning
Producing goods through processing/assembly.
Managing Business Activities
Financial Planning
Moving/storing materials in production.
Managing Business Activities
Financial Planning
Highest inventory quantity before ordering more.
Managing Business Activities
Financial Planning
Lowest inventory quantity; triggers reordering.
Managing Business Activities
Financial Planning
Products becoming out-of-date/unusable before sale.
Managing Business Activities
Financial Planning
Day-to-day activities transforming inputs to outputs.
Managing Business Activities
Financial Planning
Directing resources to produce goods/services efficiently.
Managing Business Activities
Financial Planning
Making something as effective/efficient as possible.
Managing Business Activities
Financial Planning
(already covered - see 1.4).
Managing Business Activities
Financial Planning
Production capacity exceeding market demand.
Managing Business Activities
Financial Planning
Indirect production costs not directly tied to product: factory rent, utilities, depreciation, supervision.
Managing Business Activities
Financial Planning
Processes preventing defects before/during production (proactive).
Managing Business Activities
Financial Planning
Small employee groups meeting regularly to identify/solve quality problems.
Managing Business Activities
Financial Planning
Inspection/testing to identify defects (reactive).
Managing Business Activities
Financial Planning
Systematic approach ensuring products/services meet standards consistently.
Managing Business Activities
Financial Planning
(see Waste Minimisation).
Managing Business Activities
Financial Planning
Inventory quantity triggering new order placement.
Managing Business Activities
Financial Planning
(Economic Order Quantity).
Managing Business Activities
Financial Planning
Distributing limited resources (budget, equipment, labor, time) across activities/projects.
Managing Business Activities
Financial Planning
Using resources (materials, energy, labor, capital) productively with minimum waste.
Managing Business Activities
Financial Planning
Planning/controlling business resources to achieve objectives.
Managing Business Activities
Financial Planning
Protecting employees from harm.
Managing Business Activities
Financial Planning
Requirements ensuring workplace safety: equipment standards, procedures, training, protective equipment.
Managing Business Activities
Financial Planning
Planning when tasks/production occurs.
Managing Business Activities
Financial Planning
(see Semi-Fixed Costs - 2.2).
Managing Business Activities
Financial Planning
(Changeover Costs).
Managing Business Activities
Financial Planning
Manufacturing step producing product start-to-finish.
Managing Business Activities
Financial Planning
Unused production capacity available for growth.
Managing Business Activities
Financial Planning
(Inventory Turnover - already covered).
Managing Business Activities
Financial Planning
Building/maintaining effective supplier partnerships.
Managing Business Activities
Financial Planning
Network of organizations/processes producing/delivering product from materials to customer.
Managing Business Activities
Financial Planning
Manufacturing minimizing environmental/social impact.
Managing Business Activities
Financial Planning
Tools, equipment, processes used in production.
Managing Business Activities
Financial Planning
Comprehensive approach making quality responsibility of all employees.
Managing Business Activities
Financial Planning
Production capacity below available maximum.
Managing Business Activities
Financial Planning
(Under-utilization).
Managing Business Activities
Financial Planning
Cost per item produced.
Managing Business Activities
Financial Planning
Discarded materials, inefficiency, rework, excess capacity.
Managing Business Activities
Financial Planning
Reducing waste in production/operations.
Managing Business Activities
Financial Planning
Analyzing work methods to improve efficiency.
Managing Business Activities
Financial Planning
(see Flexible Workforce - 1.4).
Managing Business Activities
Financial Planning
Increase in currency value relative to another.
Managing Business Activities
Financial Planning
Financial support provided to eligible individuals: unemployment benefits, disability support, family allowances.
Managing Business Activities
Financial Planning
Alternating periods of economic expansion and contraction.
Managing Business Activities
Financial Planning
Government regulations promoting fair competition, preventing monopolies/unfair practices.
Managing Business Activities
Financial Planning
Overall market conditions and competitive pressures.
Managing Business Activities
Financial Planning
Laws safeguarding consumers: product safety, honest information, rights to redress.
Managing Business Activities
Financial Planning
Measure of average price changes for consumer goods/services.
Managing Business Activities
Financial Planning
Total expenditure by households on goods/services.
Managing Business Activities
Financial Planning
Inflation caused by rising production costs (materials, labor, energy).
Managing Business Activities
Financial Planning
Trading one currency for another at market rate.
Managing Business Activities
Financial Planning
Sustained decrease in general price level.
Managing Business Activities
Financial Planning
Inflation from high demand exceeding supply ("too much money chasing too few goods").
Managing Business Activities
Financial Planning
Decrease in currency value relative to another.
Managing Business Activities
Financial Planning
Increase in real GDP; expansion of economy.
Managing Business Activities
Financial Planning
Unpredictability in economic conditions; difficulty forecasting.
Managing Business Activities
Financial Planning
Study of how societies manage scarce resources.
Managing Business Activities
Financial Planning
Sensitivity of quantity demanded/supplied to price changes.
Managing Business Activities
Financial Planning
Total number of people working in economy/sector.
Managing Business Activities
Financial Planning
Laws protecting employee rights: minimum wage, working hours, discrimination protection, health/safety, dismissal proced
Managing Business Activities
Financial Planning
Protections employees have: fair treatment, safe conditions, minimum wage, non-discrimination, contractual protection.
Managing Business Activities
Financial Planning
Effects of business on natural environment: emissions, waste, resource use, pollution.
Managing Business Activities
Financial Planning
Laws/policies preventing environmental damage: pollution control, resource conservation, waste management, climate regul
Managing Business Activities
Financial Planning
Requirements for acceptable environmental performance: emissions limits, waste handling, energy efficiency.
Managing Business Activities
Financial Planning
Price of one currency in terms of another.
Managing Business Activities
Financial Planning
Unexpected external event affecting economy/business: oil price spike, natural disaster, war, pandemic, financial crisis
Managing Business Activities
Financial Planning
Government use of taxation and spending to influence economy.
Managing Business Activities
Financial Planning
Official government set exchange rate (not market determined).
Managing Business Activities
Financial Planning
Market-determined exchange rate; fluctuates based on supply/demand.
Managing Business Activities
Financial Planning
Trading currencies; market where currencies exchange.
Managing Business Activities
Financial Planning
Expenditure by government on goods, services, wages, benefits, infrastructure.
Managing Business Activities
Financial Planning
Total value of goods/services produced in country in period.
Managing Business Activities
Financial Planning
Protection of people from work-related harm.
Managing Business Activities
Financial Planning
Sustained increase in general price level.
Managing Business Activities
Financial Planning
Percentage increase in price level year-over-year.
Managing Business Activities
Financial Planning
Cost of borrowing; return on savings.
Managing Business Activities
Financial Planning
Increase/decrease in borrowing costs.
Managing Business Activities
Financial Planning
Exchange of goods/services between countries.
Managing Business Activities
Financial Planning
Market where labor (employees) is traded for wages.
Managing Business Activities
Financial Planning
Government use of laws to regulate business behavior.
Managing Business Activities
Financial Planning
Laws enacted by government regulating business/society.
Managing Business Activities
Financial Planning
Total value or volume of products sold in market.
Managing Business Activities
Financial Planning
Central bank action controlling money supply/interest rates to influence economy.
Managing Business Activities
Financial Planning
Single supplier of product/service; no competition.
Managing Business Activities
Financial Planning
Lowest legal wage employers must pay employees.
Managing Business Activities
Financial Planning
Industry where single supplier most efficient (high infrastructure cost).
Managing Business Activities
Financial Planning
Market dominated by few large suppliers.
Managing Business Activities
Financial Planning
Government regulation of prices; setting maximum or minimum prices.
Managing Business Activities
Financial Planning
Illegal practice where competitors agree on prices.
Managing Business Activities
Financial Planning
Government control of prices; typically maximum/minimum.
Managing Business Activities
Financial Planning
Business with no control over price; must accept market price.
Managing Business Activities
Financial Planning
Government policies protecting domestic industries from foreign competition.
Managing Business Activities
Financial Planning
Ability to buy goods/services; determined by income and price levels.
Managing Business Activities
Financial Planning
Limit on quantity of imports allowed.
Managing Business Activities
Financial Planning
Economic contraction; negative growth, rising unemployment, falling demand.
Managing Business Activities
Financial Planning
Business sector with government price/conduct regulation.
Managing Business Activities
Financial Planning
Government rules controlling business behavior.
Managing Business Activities
Financial Planning
Government agency enforcing regulations.
Managing Business Activities
Financial Planning
Meeting regulatory requirements; following rules/standards set by government.
Managing Business Activities
Financial Planning
Limited availability of resources relative to demand.
Managing Business Activities
Financial Planning
Government payment supporting producers/consumers.
Managing Business Activities
Financial Planning
Excess supply relative to demand at current price.
Managing Business Activities
Financial Planning
Tax on imports, making foreign goods more expensive.
Managing Business Activities
Financial Planning
Mandatory payment to government by individuals/businesses.
Managing Business Activities
Financial Planning
Reduction in taxes; temporary or permanent.
Managing Business Activities
Financial Planning
Advances in technology affecting business.
Managing Business Activities
Financial Planning
Sharing technology knowledge/capabilities between countries/organizations.
Managing Business Activities
Financial Planning
Statistical method analyzing data over time to identify trends/patterns.
Managing Business Activities
Financial Planning
Exchange of goods/services between parties/countries.
Managing Business Activities
Financial Planning
Obstacles to international trade: tariffs, quotas, regulations, transport costs.
Managing Business Activities
Financial Planning
Group of countries with reduced trade barriers among themselves.
Managing Business Activities
Financial Planning
Percentage of labor force without work/actively seeking.
Managing Business Activities
Financial Planning
Rapid increase in wage levels.
Managing Business Activities
Financial Planning
Global economic system; interconnected markets, trade, finance.
Managing Business Activities
Financial Planning
Managing Business Activities
Financial Planning
Ansoff's Matrix (4 strategies), Boston Matrix (4 quadrants), Porter's Five Forces (5 forces), Porter's Strategic Matrix,
Managing Business Activities
Financial Planning
Globalisation, FDI, MNCs, Trading blocs, Glocalisation, Offshoring, Outsourcing, Global marketing, Cultural adaptation,
Managing Business Activities
Financial Planning
All 7 accounting ratios (with formulas), Quantitative skills, Transferable skills.
Managing Business Activities
Financial Planning
The process of comparing actual financial results with budgeted (planned) figures to identify variances, understand thei
Managing Business Activities
Managing Finance
When a business is unable to continue trading, typically because it cannot pay its debts (insolvency) or because it is n
Managing Business Activities
Managing Finance
The distinction between profit (an accounting measure of revenue minus costs over a period) and cash (the actual money a
Managing Business Activities
Resource Management
A lean production approach where materials and components are ordered and delivered just as they are needed in the produ
Managing Business Activities
Resource Management
A production method or business that relies heavily on machinery, equipment, and technology rather than labour to produc
Managing Business Activities
Resource Management
The process of managing inventory levels to ensure the business has enough stock to meet demand while minimising holding
Managing Business Activities
Resource Management
A measure of output per unit of input, showing how efficiently resources are being used to produce goods or services.
Managing Business Activities