business vocabulary 1

Unit 1:
Accounting and finance:
Break-even point：When total revenue equal to total cost.
Budgetary control: By comparing actual with budget for revenues and expenses. Analyzing the divergences to cope with the unexpected.
Cash flow: cash inflow minus cash outflow
Cash flow forecast: predict a firm’s cash inflow and outflow detailed.
Contribution: total revenue minus variable costs.
Cost centre: a department to distribute the specific costs.
Factoring: a company let someone else to collection debt instead. Get 80% of the value of invoiced sales as cash advance from them.
Fixed costs: a type of cost of company which not change. (e.g. land, machinery
)
Overdraft: a firm spends more then it own, borrow money from bank and It has maximum limit for any period time.
Profit: total revenue minus total cost
Profit centre: a department of a company that has been given authority to run itself as a business within a business.
Safety margin: difference between demand and break-even.
Sale and leaseback: a contract to sale firm and at the same time buying back on a long-term lease.
Share capital: total value of invest from shareholders.
Variable cost: A type of cost which change along with output.
Variance analysis: analysis differences between actual and budget
Venture capital: risk capital,
Working capital: current assets – current liabilities
Zero budgeting: setting budget at zero, demanding that managers should give a full justification for every pound of budget they request.