Finance: Profit and CF, Objectives

FINANCE KEY SUMMAR TERMS PROFIT SCF OBJECTIVES - Profibuscashflow:- - Typical obseceives:- Prof. t - the difference A proficable business may Contain numerical between revenue and run 006 of cash s be elements totac costs over time unable 60 paycreditors, Have a timescale. becoming insocvent influences: - cash flow the movement MUSE profit to Functional obsectives of cash in and out sacisty owners Corporate objectives and of a business Measurements of profit: - aims Revenue Benefits: - Revenue- in come Direct costs judgement from a bus. nesses Gross profe Comparisons activities Indirect COSES Motivation operating profe Direction Direct costs - varies interest Performance d rectly with output, Prolit of year Planning the cost of saces' Indirect costs accounts for acc activities SELF-TEST Operating profic the zin anciac Supplus from normal trading 1. what is profit and why's it important? a ctivicies Prolit is the difference between total costs and revenue. It is important as it Gross profit a broad mea surement of satisfies many stake holders, including the income from their investment owners who may be eager for a return on saces 2. what do typical objectives have! prohit of one year this Num erical ecements and a structured level caues inco time scale account all ex pen ditures 3. .16 Name 2 benefits of sebling objectives. provides direction and motivation Objective - statements 01 specific outcomes that are to be Name 3 3 ways of measuring prohs acheived of one year, indirect costs and ways of measuring profit are, prohs operating profit 5. what is revenue? Revenue businesses is the income made by a accivibies