Financial Management Strategies (HSC SSCE Business Studies): Flashcards
📚Flashcards
Practise the cards
10 cards from this deck
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Practise the cards
10 cards from this deck
Profitability management
Profitability management
Controlling costs & revenue to maximise profits
Fixed costs
Fixed costs
Costs that remain constant regardless of activity level
Variable costs
Variable costs
Costs that change in proportion to production/activity level
Fixed costs examples
Fixed costs examples
Rent, salaries, insurance, depreciation
Variable costs examples
Variable costs examples
Raw materials, labour, energy, packaging
Cost centres
Cost centres
Departments/sections where costs can be directly attributed
Expense minimisation
Expense minimisation
Reducing costs without compromising quality or value
Revenue
Revenue
Income from primary business activities (sales/services)
Sales mix
Sales mix
Combination of different products/services a business offers
Pricing policy influences
Pricing policy influences
Production costs, competitors, goals, brand, govt policies