Business Finance and Arithmetic

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A Cash Register (or Cash Book) is a book of original entry where all cash transactions are recorded. It is essential because: • It tracks all money received (inflow) and paid (outflow) • Without entri…

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Cash Inflow refers to money coming into the business. Examples include: • Owner's equity (own money invested) • Loans received from banks, friends, family • Sales receipts from products/services • Int…

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Cash Outflow refers to money going out of the business. Examples include: • Purchasing land, building, machinery, furniture • Raw materials and packing materials • Salaries, bonuses, and employee bene…

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• Unit of Sale: 1 cup (100 ml) • Unit Cost: ₹3.50 (variable costs including milk, sugar, tea leaves, fuel, disposable cup) • Unit Price: ₹5.00 (selling price per cup) • Gross Profit per Unit: ₹1.50 (₹…

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Unit of Sale is the standard measure used to bill customers and analyze business performance. Examples: • Fruit vendor: Kilogram (for apples) • Dairy: Litre (for milk) • Garment shop: Piece/Number (fo…

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**Start-up Costs:** • Incurred initially when business starts • Include: Land, building, machinery, computers, registration, initial raw materials • One-time expenses (though may be repeated later) • …

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Fixed Costs are ongoing expenses that remain constant regardless of sales volume. Characteristics: • Must be paid whether business is producing/selling or not • 'Fixed in nature' not necessarily 'fixe…

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Variable Costs change in direct proportion to output/sales volume. Characteristics: • Total cost increases as production increases • True variable cost varies in exact proportion to output • If sales …