Salon Financial Management Flashcards
7 cards from real Beauty Business practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Salon Financial Management flashcards as text
A stylist on 45% commission books $2,000 in services in a week. What is her commission pay?
Answer: $900
45% of $2,000 equals $900.
What is the primary purpose of a salon budget?
Answer: To plan and control income and spending
A budget helps forecast revenue and manage expenses to stay profitable.
Which metric shows the average amount a client spends per visit?
Answer: Average ticket
Average ticket is total sales divided by the number of client visits.
A salon buys product at $5 and sells it for $15 retail. What is the markup?
Answer: 200%
The $10 markup over the $5 cost is 200% of cost.
Why is an emergency cash reserve important for a salon?
Answer: To cover unexpected expenses or slow periods
A reserve protects the business during slow seasons or surprise costs.
What does 'overhead' refer to in salon finances?
Answer: Ongoing operating costs not tied to a single service
Overhead is the general cost of running the salon, such as rent, utilities, and insurance.
How is gross profit calculated for a salon?
Answer: Revenue minus cost of goods sold
Gross profit equals revenue less the direct cost of goods sold.