Role of the finance function (OCR GCSE Business): Flashcards
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Role of finance function
Role of finance function
Managing company's financial resources
4 tasks of finance function
4 tasks of finance function
Budgeting, forecasting, info provision, planning support
Calculating sales revenue & production costs
Calculating sales revenue & production costs
Determining income from sales & expenses for production
How to calculate profit or loss
How to calculate profit or loss
Subtract production costs from sales revenue
What is forecasting cash flow
What is forecasting cash flow
Predicting future revenues and expenditures
Purpose of cash flow forecasting
Purpose of cash flow forecasting
To determine if business has enough cash or needs finance
Example of additional finance
Example of additional finance
Overdraft
What finance function manages
What finance function manages
Payments (wages, bills) & receipts from sales
What is arranging finance
What is arranging finance
Securing funds for the business
2 methods of arranging finance
2 methods of arranging finance
Obtaining loans or issuing shares
What is break-even output
What is break-even output
Level of output needed to cover all costs
What does average rate of return measure
What does average rate of return measure
Profitability of investments or projects