Command words appear at the start of every exam question. They tell you exactly what to do. Getting this wrong loses all the marks — even if the science is right. Learn these first.
The most important command words — used across all subjects
State / Name / IdentifyCommand word
Plain English
Just say the answer. One word or one short phrase. No explanation needed.
What NOT to do
Write a sentence explaining it — this wastes time and scores no extra marks.
Example question
State the products of aerobic respiration. [1 mark]
Good answer
Carbon dioxide and water.
DescribeCommand word
Plain English
Say what you can see or what happens. Use data if there is a graph or table. Do NOT say why.
The trap
Students lose marks by explaining instead of describing. This is because the particles have more energy — that's an explanation. Save that for Explain questions.
Example question
Describe the trend shown in the graph. [2 marks]
Good answer
As the temperature increases from 20°C to 60°C, the rate of reaction increases. Above 60°C, the rate decreases sharply.Use numbers from the graph. Say what goes up, what goes down, when it levels off.
ExplainCommand word
Plain English
Say what happens AND why it happens. Every mark needs a reason. Look at how many marks — that's how many points you need.
The formula
State the fact. Then write "because" or "therefore" or "this means that". Then complete the reason.
Example question
Explain why increasing temperature increases the rate of diffusion. [2 marks]
Good answer
Increasing temperature gives the particles more kinetic energy [1]. Therefore the particles move faster and collide more frequently, increasing the rate of diffusion [1].
Weak answer
It goes faster because it's hotter. — no mark. "Hotter" is not a scientific reason.
Evaluateev-AL-yoo-ateCommand word
Plain English
Give the good points AND the bad points AND then say what you think overall. All three parts are needed. This is the hardest command word — it is always worth the most marks.
The formula
Advantage: [point]. However, disadvantage: [point]. Overall, I think [conclusion] because [reason].
Example (Biology)
Evaluate the use of embryos in stem cell research. [4 marks]
Good answer
Embryonic stem cells can differentiate into any cell type, so they could be used to treat diseases like diabetes [1]. However, the embryo is destroyed in the process, which raises ethical concerns because some people believe life begins at fertilisation [1]. On the other hand, the embryos used are often surplus IVF embryos that would otherwise be discarded [1]. Overall I think the benefits outweigh the concerns because the potential to cure disease is significant [1].
Weak answer
Stem cells are good for medicine but some people don't like it. — 0 marks. No points for or against, no conclusion.
CompareCommand word
Plain English
Say how two things are similar AND how they are different. Both must be mentioned — you cannot just describe one thing.
The formula
Both [A] and [B] have [similarity]. However, [A] has [feature] whereas [B] has [different feature].
Example question
Compare mitosis and meiosis. [3 marks]
Good answer
Both mitosis and meiosis are types of cell division [1]. However, mitosis produces 2 genetically identical diploid cells, whereas meiosis produces 4 genetically unique haploid cells [1]. Mitosis is used for growth and repair, whereas meiosis produces gametes for sexual reproduction [1].
JustifyJUS-ti-fyCommand word
Plain English
Give your answer and then explain the reasons WHY that answer is correct. Use evidence from the question if there is any.
The formula
[Your answer]. This is because [reason 1] and [reason 2].
Example question
Justify why a root hair cell is well adapted for absorbing water. [2 marks]
Good answer
The root hair cell is well adapted because its long thin extension greatly increases the surface area [1], allowing more water to be absorbed by osmosis across the cell membrane [1].
SuggestCommand word
Plain English
Use what you know to come up with a sensible answer. There is no single right answer — the examiner wants to see you think scientifically. Do not leave this blank.
Key point
Any scientifically reasonable answer scores. The mark scheme says "accept any suitable suggestion." Never write nothing — any attempt using correct science gets credit.
Example question
Suggest one reason why the rate of photosynthesis might decrease on a cloudy day. [1 mark]
Good answer
Less light energy is available, so the rate of the light-dependent reaction decreases.
Calculate / Show that / DetermineCommand word
Plain English
Work out a number using an equation. ALWAYS show every step of working — even if you get the wrong final answer, you can still get method marks.
The formula
Step 1: Write the equation. Step 2: Substitute the numbers in. Step 3: Calculate. Step 4: Write the unit.
Example question
Calculate the magnification. Image = 4mm, actual = 0.04mm. [2 marks]
Good answer
Magnification = image size ÷ actual size [write formula] = 4 ÷ 0.04 [substitute] = ×100 [calculate, with unit]
"Show that" trap
If the question says "show that the answer is 100", you CANNOT just write "100". You must show every step of the working to prove it.
PredictCommand word
Plain English
Say what you think will happen, using your scientific knowledge as a reason. Not a guess — a science-based forecast.
The formula
[What will happen] because [scientific reason].
Example
The rate of reaction will increase because more particles will have energy above the activation energy.
Give a reason forCommand word
Plain English
Explain why something happened. One clear scientific reason per mark. Use "because" or "due to".
Example
Give a reason why the potato cylinder decreased in mass. → Water moved out of the potato cells by osmosis because the external solution had a lower water concentration than the cell sap.
These are the words that separate a Grade 4 answer from a Grade 7 answer. The science can be identical — it's the language that scores the mark. When you want to write an everyday word, check this table first.
Replace these everyday words with these exam words
| You want to write… | Write this instead | When to use it |
|---|---|---|
| goes up / gets bigger / rises | increases | Rate increases, temperature increases, concentration increases |
| goes down / gets smaller / falls | decreases / decreases sharply | Rate decreases, population decreases |
| stays the same / doesn't change | remains constant / is maintained | Temperature remains constant, pH is maintained |
| goes up a lot / shoots up | increases significantly / increases rapidly | Rate increases rapidly above 37°C |
| levels off / stops going up | plateaus / reaches a maximum | The rate plateaus at high light intensity |
| goes up then comes back down | increases then decreases | Enzyme activity increases then decreases above the optimum |
| so / that's why / which means | therefore / consequently / as a result | Temperature increases, therefore particles move faster |
| because of | due to / as a result of | Due to the increased surface area… |
| helps | enables / allows / facilitates | The large surface area enables more glucose to be absorbed |
| stops / blocks | inhibits / prevents / restricts | The enzyme is inhibited by high temperature |
| makes / creates | produces / generates / forms | Aerobic respiration produces carbon dioxide and water |
| needs / uses | requires / utilises | Active transport requires energy from respiration |
| moves to | is transported to / diffuses into / moves along a concentration gradient | Glucose is transported into the blood from the small intestine |
| is better at | is more efficient at / has a greater capacity for | The villi are more efficient at absorbing nutrients |
| big / large | significant / substantial / greater | There is a significant increase in heart rate during exercise |
| small / tiny | minimal / negligible / limited | The change in mass was negligible at this concentration |
| the same | equal / equivalent / identical | Both cells have identical genetic material |
| different | distinct / varied / contrasting | The two habitats have distinct environmental conditions |
| affects | influences / has an effect on / impacts | Temperature influences the rate of enzyme activity |
| I think / in my opinion | the evidence suggests / the data indicates / this implies | The data indicates that osmosis has occurred |
Linking words — use these to connect ideas into full sentences
| To do this… | Use these words | Example |
|---|---|---|
| Add a reason | because, since, as, due to | …because the enzyme active site changes shape |
| Show a result | therefore, consequently, as a result, so | …therefore fewer enzyme-substrate complexes form |
| Show contrast | however, whereas, in contrast, on the other hand | …however, anaerobic respiration does not require oxygen |
| Show similarity | similarly, both, in the same way | Both diffusion and osmosis are passive processes |
| Reach a conclusion | overall, in conclusion, this suggests that | Overall, the data suggests that temperature is the limiting factor |
| Give an example | for example, for instance, such as | …for example, glucose and amino acids |
These are the words AQA Biology mark schemes use. If this word is not in the answer, the mark is not awarded — even if the meaning is roughly right.
Cell Structure and Transport (B1)
Osmosisoz-MOH-sisBiology B1
Plain English
Water moves through a membrane from where there is more water to where there is less water.
Exam definition
The movement of water molecules from a region of higher water concentration to a region of lower water concentration through a partially permeable membrane.
Must include
✓ water molecules (not just "water") ✓ partially permeable membrane ✓ concentration gradient direction
Weak answer
Water moves to where it is needed — 0 marks. No gradient, no membrane.
Diffusiondif-YOO-zhunBiology B1
Plain English
Particles spread out from where there are lots of them to where there are fewer, without needing energy.
Exam definition
The net movement of particles from a region of higher concentration to a region of lower concentration, down a concentration gradient. No energy is required.
Key contrast
Diffusion = passive (no energy). Active transport = requires energy (ATP from respiration). This distinction is tested every year.
Active transportBiology B1
Plain English
Moving particles against the flow — from where there are fewer to where there are more. This is hard work so it needs energy.
Exam definition
The movement of substances against a concentration gradient (from lower to higher concentration), using energy released from respiration.
Must include
✓ against concentration gradient ✓ energy from respiration (not just "energy")
Digestion and Enzymes (B3)
Denatured / Denaturationdee-NAY-cherdBiology B3
Plain English
The enzyme is broken and stops working permanently. This happens when it gets too hot or the pH is wrong.
Exam language
The enzyme is denatured. The active site changes shape so the substrate can no longer fit. The enzyme-substrate complex cannot form.
Critical point
NEVER say the enzyme is "killed" or "destroyed". Enzymes are not alive. Always say "denatured" or "active site changes shape".
Weak answer
The enzyme gets killed by the heat — 0 marks.
Active siteBiology B3
Plain English
The part of the enzyme that the substrate (the thing being broken down) fits into — like a lock and key.
Full sequence to learn
The substrate fits into the active site of the enzyme, forming an enzyme-substrate complex. The substrate is broken down into products, which are released. The active site is unchanged and can accept another substrate.
Respiration (B9)
Aerobic respirationair-OH-bikBiology B9
Plain English
Using oxygen to release energy from glucose.
Word equation
Glucose + oxygen → carbon dioxide + water (+ energy released as ATP)
Key phrase
Always say energy is "released" not "made" or "produced". The mark scheme says "released".
Anaerobic respiration / Oxygen debtan-air-OH-bikBiology B9
Plain English
Releasing energy without oxygen. Produces lactic acid in animals. Causes cramp after exercise.
Word equation (animals)
Glucose → lactic acid (+ small amount of energy)
Oxygen debt
After exercise, extra oxygen is needed to break down the lactic acid that has accumulated in the muscles. This is called the oxygen debt.
Health and Disease (B5–B7)
Pathogen / Communicable diseasePATH-oh-jenBiology B5–B7
Plain English
A pathogen is a germ (bacteria, virus, fungus or protist) that causes disease. Communicable means it can be passed from person to person.
Exam language
A pathogen is a microorganism that causes disease. Communicable diseases are caused by pathogens and can be transmitted between individuals.
The four types
Bacteria · Viruses · Fungi · Protists — must know one disease caused by each.
Cell Cycle and Reproduction (B2, B13)
Mitosis vs Meiosismy-TOH-sis · my-OH-sisBiology B2/B13
Mitosis
Produces 2 genetically identical diploid cells. Used for growth, repair and asexual reproduction.
Meiosis
Produces 4 genetically unique haploid cells (gametes). Used in sexual reproduction. Produces genetic variation.
Key words
diploid (2 sets of chromosomes) · haploid (1 set) · genetically identical · genetically unique · gamete
Chemistry mark schemes are very precise about word choice. "Ions are attracted" is not enough — you must say "electrostatic forces of attraction between oppositely charged ions." The extra words are the marks.
Atomic Structure and Bonding (C1–C3)
Ionic bondingeye-ON-ikChemistry C3
Plain English
A metal gives electrons to a non-metal. Both become charged particles (ions). Opposite charges attract and hold them together.
Exam definition
Ionic bonding involves the transfer of electrons from a metal to a non-metal, forming oppositely charged ions. These ions are held together by strong electrostatic forces of attraction.
Must include
✓ "transfer" (not "sharing") ✓ "electrostatic forces of attraction" ✓ "oppositely charged ions"
Property link
Ionic compounds have high melting points because a large amount of energy is required to overcome the strong electrostatic forces between the ions.
Covalent bondingko-VAY-lentChemistry C3
Plain English
Two non-metals share electrons. Both atoms get a full outer shell by sharing.
Exam definition
Covalent bonding involves the sharing of a pair of electrons between two non-metal atoms. Each atom contributes one electron to the shared pair.
Must include
✓ "sharing" (not "transferring") ✓ "pair of electrons" ✓ "non-metal atoms"
Chemical Changes (C5)
Electrolysisee-lek-TROL-i-sisChemistry C5
Plain English
Using electricity to split a compound apart. The positive electrode attracts negatives; the negative electrode attracts positives.
Key terms
Anode = positive electrode (attracts negative ions / anions). Cathode = negative electrode (attracts positive ions / cations). Electrolyte = the molten or dissolved substance being broken down.
Memory aid
PANIC: Positive Anode, Negative Is Cathode.
Electrode reaction
At the cathode: positive ions gain electrons (reduction). At the anode: negative ions lose electrons (oxidation).
Displacement reactionChemistry C5
Plain English
A more reactive metal pushes out a less reactive metal from its compound.
Exam language
A more reactive metal displaces a less reactive metal from a solution of its salt. For example, zinc displaces copper from copper sulfate solution because zinc is higher in the reactivity series.
Chemical Analysis (C12) and Atmosphere (C13)
Gas tests — exact resultsChemistry C12
Oxygen
A glowing splint is inserted. The splint relights.
Hydrogen
A lit splint is held near the tube. A squeaky pop is heard.
Carbon dioxide
The gas is bubbled through limewater. The limewater turns cloudy / milky.
Chlorine
Damp litmus paper is held in the gas. The litmus paper is bleached / turns white.
Physics mark schemes require the equation first, then substitution, then the answer with units. Missing any step costs marks. The unit is a mark in itself — never leave it out.
Equation method — required for every calculation
The three-step calculation methodPhysics — all topics
Step 1
Write the equation: e.g. pressure = force ÷ area
Step 2
Substitute the numbers: pressure = 30 ÷ 5
Step 3
Calculate and write the unit: pressure = 6 Pa
Why it matters
Even if the final answer is wrong, Steps 1 and 2 each carry a method mark. You can score 2/3 with the wrong answer if the method is shown.
Forces and Motion (P8–P11)
Resultant forcePhysics P8
Plain English
The single force that has the same effect as all the forces acting together. If forces balance, the resultant is zero.
Exam language
If the resultant force is zero, the object is in equilibrium — it remains stationary or continues to move at constant velocity (Newton's 1st Law). If the resultant force is not zero, the object accelerates in the direction of the resultant force (Newton's 2nd Law).
Key equation
F = ma (Force = mass × acceleration). Unit: Newton (N).
Velocity-time graph languagePhysics P9/P10
Flat line
The object is moving at constant velocity. The resultant force is zero.
Line going up
The object is accelerating. There is a resultant force in the direction of motion.
Line going down
The object is decelerating. There is a resultant force opposing the direction of motion.
Area under graph
The area under a velocity-time graph equals the distance travelled.
Electricity (P5)
Series vs Parallel circuitsPhysics P5
Series — current
Current is the same at all points in a series circuit.
Series — voltage
The total voltage is shared between the components. Voltages add up to the supply voltage.
Parallel — current
Current is shared between branches. The total current equals the sum of the branch currents.
Parallel — voltage
Voltage across each branch is the same as the supply voltage.
Energy (P3)
Efficiency / Wasted energyPhysics P3
Plain English
How much of the energy put in actually does the useful job. The rest is wasted, usually as heat.
Exam language
Wasted energy is dissipated to the surroundings, usually as thermal energy. It cannot be recovered.NOT "lost" — energy cannot be lost (conservation of energy). Say "dissipated" or "transferred to the surroundings".
Equation
Efficiency = useful output energy ÷ total input energy (× 100 for percentage)
In Maths, marks are awarded for method (M marks) and accuracy (A marks). You can score method marks even with a wrong final answer — but only if the working is shown. Never do mental arithmetic without writing it down.
Common error words — what these actually mean
Show that [answer is X]Maths — all topics
Plain English
The answer is given to you. Your job is to prove it by showing every step of the working. You CANNOT just write the answer.
What to do
Number each step. Write what you are doing at each step. The final line must clearly show you have arrived at the given answer.
Weak answer
= 100 ✓ — 0 marks. The answer was given — the working is the answer.
HenceMaths — all topics
Plain English
"Use your answer to the previous part to answer this part." Do not start from scratch — you must use the result you just found.
Example
Part (a): Find the value of x. Part (b): Hence find y. → Use your x value from part (a) to find y. Starting again scores zero.
Index law reminders — teacher-flagged error patterns
x² means x×x — NOT 2xMaths — Algebra
The error
x² = 2x — This is the single most common error on Ander's papers. x² means x multiplied by x.
Correct
x² = x × x. If x = 3, then x² = 9 (not 6).
Index law
(a^m)^n = a^(m×n). Write this at the top of every index laws question.
Trigonometry
SOHCAHTOASOH-kah-TOH-ahMaths — Trigonometry
SOH
Sin = Opposite ÷ Hypotenuse
CAH
Cos = Adjacent ÷ Hypotenuse
TOA
Tan = Opposite ÷ Adjacent
Rule
Draw and label the triangle FIRST. Write out the formula BEFORE substituting. The hypotenuse is always opposite the right angle.
Geography mark schemes require place names for top marks. An answer about earthquakes without saying "Japan 2011" or "Nepal 2015" cannot score Level 2 or above. Learn 5 facts per case study and name the place in every answer.
Command words specific to Geography
Assess / To what extentGeography
Plain English
Like "Evaluate" — give arguments for AND against, then decide how much you agree with the statement. Use evidence (data, case studies).
The formula
On one hand, [point with named evidence]. However, [counter-point with named evidence]. Overall, [conclusion — how far you agree and why].
Example question
To what extent are human factors more important than physical factors in causing deaths from tectonic hazards? [9 marks]
Good answer structure
Level 3 answers use named case studies to support both sides and reach a clear, justified conclusion. E.g. "In the 2010 Haiti earthquake, poverty meant buildings were not earthquake-proof, leading to 230,000 deaths. However, in Japan 2011, despite excellent preparation, 18,000 died due to the tsunami — a physical factor. Overall, human factors are more important in LICs where preparation is limited."
Key Geography vocabulary
Development gapGeography — Economic World
Plain English
The difference in wealth and quality of life between rich and poor countries.
Exam language
The development gap refers to the difference in levels of development between HICs (high income countries) and LICs (low income countries), measured using indicators such as GNI per capita, HDI or literacy rate.
Key indicators to name
GNI per capita · HDI (Human Development Index) · life expectancy · infant mortality rate · literacy rate
Plate boundary typesGeography — Hazards
Constructive
Plates move apart. Magma rises to fill the gap, forming new crust. Causes earthquakes and volcanoes. Example: Mid-Atlantic Ridge.
Destructive
Plates move towards each other. Oceanic crust subducts under continental crust. Causes earthquakes, volcanoes and tsunamis. Example: Pacific Ring of Fire.
Conservative
Plates move past each other. No crust is created or destroyed. Causes earthquakes only. Example: San Andreas Fault, California.
Primary / Secondary effects and ResponsesGeography — Hazards
Primary effects
The immediate, direct results of the hazard. Buildings collapse, people die, roads crack. These happen during or immediately after the event.
Secondary effects
Effects that happen later as a result of the primary effects. Disease spreads due to contaminated water; economic activity stops; homelessness increases.
Immediate responses
Actions taken in the days/weeks after the event — search and rescue, providing food and water, medical aid.
Long-term responses
Actions taken over months and years — rebuilding infrastructure, improving prediction systems, economic recovery.
English mark schemes reward specific analysis of language. Naming a technique scores nothing on its own — the mark comes from explaining the precise effect on the reader. Always zoom in on a specific word, not just a technique name.
English Language — Q4 analysis vocabulary
Connotation / Implies / Suggestskon-oh-TAY-shunEnglish Language
Plain English
What a word makes you think of or feel — beyond its dictionary meaning.
How to use it
The word "[quote]" has connotations of [meaning], which suggests [effect on reader / idea being conveyed].
Example
The word "devours" has connotations of a predator, which suggests that nature is violent and uncontrollable, making the reader feel anxious and unsettled.
Weak answer
The writer uses a metaphor. This is effective. — Level 1 at most. No specific word, no effect.
Structure — language for Q4English Language
Opening
The writer opens with [device], which immediately establishes [effect/idea] and draws the reader in by [reason].
Development
As the text progresses, the writer shifts from [X] to [Y], creating a sense of [effect].
Ending
The text concludes with [device], which leaves the reader with [feeling/idea], reinforcing the writer's overall message that [theme].
English Literature — Poetry comparison vocabulary
Comparative phrases — BLOT structureEnglish Literature
BLOT
Both poems intro → Link the theme → One poem in detail → The other poem in detail
Both poems intro
Both [Poem A] and [Poem B] explore the theme of [theme], though they approach it in contrasting ways.
Similarity phrase
Similarly, in [Poem B], [poet] uses [device] to convey [idea], suggesting that…
Contrast phrase
In contrast, while [Poem A] presents [idea], [Poem B] suggests [different idea], creating a sense of…
Zoom-in phrase
The [noun/verb/adjective] "[word]" suggests [meaning], implying that the speaker feels [emotion/idea]. This is reinforced by…
Avoid
The poet uses alliteration. This makes it sound nice. — No effect, no zoom-in, no marks.
Computing mark schemes want one-sentence definitions with the correct technical vocabulary. "A network that connects computers" scores 0. "A LAN is a network that connects devices within a limited geographical area, such as a school" scores the mark.
Data representation definitions (B1 — highest frequency in exams)
Binary / Denary / HexadecimalBY-nuh-ree · DEE-nuh-ree · hex-ah-DES-ih-mulComputing
Binary
A number system that uses only two digits: 0 and 1. Computers use binary because electronic components can only be in two states: on (1) or off (0).
Denary
The standard base-10 number system that uses the digits 0–9.
Hexadecimal
A base-16 number system using digits 0–9 and letters A–F. Used as a shorthand for binary because one hex digit represents exactly four binary digits (a nibble).
Network definitions (Topic 5 — heavily tested)
LAN / WANComputing — Networks
LAN
A Local Area Network (LAN) connects devices within a limited geographical area, such as a school or office building. It is typically owned and managed by a single organisation.
WAN
A Wide Area Network (WAN) connects devices across a large geographical area, such as across countries. The internet is the largest WAN.
Packet switching
Data is broken into small packets. Each packet is sent independently and may take a different route to the destination. Packets are reassembled at the destination in the correct order.
Latency
The time delay between data being sent and received across a network.
DT mark schemes want specific material properties linked to their use. "It's strong" scores 0. "It has high tensile strength, which means it can withstand forces that would cause it to stretch or break" scores the mark.
Materials vocabulary — Woods
Hardwood vs SoftwoodDesign Technology
Hardwood
Hardwoods come from deciduous trees (trees that lose their leaves). They are generally denser and more durable. Examples: oak, mahogany, teak. Used for: furniture, flooring, veneers.
Softwood
Softwoods come from coniferous trees (evergreen trees with needles). They are generally less dense and cheaper. Examples: pine, spruce, cedar. Used for: construction, furniture frames, packaging.
Key distinction
Hard/soft refers to the tree type, NOT the hardness of the wood. Balsa is a hardwood despite being very soft. Yew is a softwood but is hard.
Materials vocabulary — Metals
Ferrous vs Non-ferrous metalsFER-usDesign Technology
Ferrous
Ferrous metals contain iron. They are generally magnetic and prone to rusting. Examples: mild steel, cast iron, stainless steel.
Non-ferrous
Non-ferrous metals do not contain iron. They are generally resistant to corrosion. Examples: aluminium, copper, brass (an alloy of copper and zinc).
Property link
Aluminium has a low density and high corrosion resistance, making it suitable for aircraft and food packaging.
New and Emerging Technologies vocabulary
CAD / CAMDesign Technology — New Technologies
CAD
Computer Aided Design — using software to create and modify 2D or 3D design models. Allows designs to be tested virtually before manufacture, reducing waste.
CAM
Computer Aided Manufacture — using computer-controlled machines (e.g. CNC routers, laser cutters) to manufacture components with high precision and repeatability.
Advantage phrase
CAD/CAM reduces human error, increases precision and allows for rapid prototyping, which reduces development time and cost.
BTEC Business Finance exam questions expect answers in full sentences with figures. "Profit goes up" scores 0. "Gross profit increased by £5,000 because revenue increased whilst costs of goods sold remained constant" scores the marks.
Finance vocabulary — high frequency in the exam
Gross profit / Net profitBTEC Business
Revenue
The total income a business receives from sales before any costs are deducted. Revenue = selling price × quantity sold.
Gross profit
Gross profit = Revenue − Cost of goods sold (direct costs). This shows how much the business makes before overheads.
Net profit
Net profit = Gross profit − Overheads (indirect costs such as rent, wages, marketing). This is the actual profit after all expenses.
Profit margin
Net profit margin = (Net profit ÷ Revenue) × 100. A declining net profit margin suggests costs are rising faster than revenue.
Cash flowBTEC Business
Cash inflow
Money coming into the business — sales revenue, loans received, owner's capital invested.
Cash outflow
Money leaving the business — paying suppliers, wages, rent, loan repayments.
Net cash flow
Net cash flow = Total inflows − Total outflows. A negative net cash flow means more money is leaving than entering.
Problem phrase
The business has a cash flow problem because its outflows exceed its inflows, meaning it may be unable to meet its financial obligations.
Break-evenBTEC Business
Plain English
The point where the business is making exactly enough money to cover all its costs — not making a profit or a loss.
Exam definition
The break-even point is the level of output at which total revenue equals total costs. Below this point, the business makes a loss; above it, the business makes a profit.
Formula
Break-even output = Fixed costs ÷ (Selling price − Variable cost per unit)
Margin of safety
The margin of safety is the difference between the current level of output and the break-even output. It shows how much output can fall before the business makes a loss.