11. Calculating Costs, Revenues And Profits. Flashcards
0
Q
Revenue.
A
The value of sales made during a trading period.
Revenue = price X quantity sold
1
Q
Profit.
A
What is left after costs are deducted from revenue.
Profit = sales revenue - total costs.
2
Q
Costs.
A
Expenditures made by a business as part of their trading operations.
3
Q
Fixed costs.
A
Costs that do not change with the level of output.
4
Q
Variable costs
A
Costs that change directly with the level of output.
5
Q
Total costs
A
Fixed costs + variable costs.
