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types of goods and cash flow - Coggle Diagram
types of goods
and cash flow
inferior
cheap su substitutes of normal good
for example Tesco branded baked beans
when income decreases demand goes down
demand increases when income goes down
luxury
when income increases demand increases
when income decreases demand goes down
e.g holidays designer goods
normal
opposite to inferior goods
branded things
e.g Heinz beans instread of Tesco branded beans
when income starts to increase again demand increases
cash flow
advantages
helps identity when there may be
cash shortages
allows planning time for problem solving
supports attempts into raising finance
helps identify where problems may occur
disadvantages
doesn't show or take into account profit
shows a prediction that alll
customers pay on time which
isn't always likely
not all costs are included
costs may vary
e.g raw materials Amy increase
causing financial predictions to be wrtong
shows a prediction of the movement
of cash in and out of a business
inflows-outflows