Finance And Accounting-cost And Profit Centres Flashcards Preview

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Flashcards in Finance And Accounting-cost And Profit Centres Deck (18)
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1
Q

What is a cost centre

A

Somewhere that spends money but does not generate profit

2
Q

What is an example of a cost centre in a school

A

Each department is a cost centre

3
Q

What is an example of a profit centre in a school?

A

Departments that receive part of the firms revenue

4
Q

What is a profit centre

A

Somewhere that spends money and generates revenue

A separate profit and loss account can be drawn up

5
Q

what is depreciation?

A

the rate at which your fixed assets decline in value over time

6
Q

what is the method of calculating depreciation?

A

straight line method

7
Q

how do you work out depreciation allowance?

A

original cost-residual value/expected life

8
Q

what is residual value?

A

what you expect to get for each asset if you were to sell it at the end of it’s life

9
Q

what are pressure groups?

A

an organisation set up to try to influence what we think about the business and it;s environment. It aims to challenge and change the behaviour of a business

10
Q

what are 3 campaign tactics?

A

media stunts
design and place cards
petitions

11
Q

for a pressure group to be successful, what 3 things can it depend on?

A

public support
power of a role model/image
impact of the media

12
Q

what is labour turnover?

A

the movement of employees in and out of a business

13
Q

how do you measure labour turnover?

A

number of leavers/average no. of employed x100

14
Q

what are 3 causes of high labour turnover?

A

inadequate wage
low levels of motivation
employing the wrong type of employee

15
Q

what are 3 costs of high labour turnover?

A

additional recruitment costs
lost production costs
training replacement costs

16
Q

what is a benefit of high labour turnover?

A

New ideas are bought to the table

17
Q

what are 3 financial measure of performance?

A

net/gross profit
market share
sales revenue

18
Q

what are 3 non-financial measure of performance?

A

reputation
labour turnover
brand value