1.2.3 Revenue, Costs & Profits Flashcards
1
Q
Formula of profit/loss:
A
Sales revenue - Total cost = Profit/Loss
2
Q
Formula of sales revenue:
A
Sales Revenue = Price * Sales Volume ( Quantity )
3
Q
Formula of total costs:
A
Total costs = fixed costs + variable costs
4
Q
What is division of labour?
A
Division of labour is that the people are divided in work into smaller groups to do their own task.
5
Q
Why is DOL beneficial to a business?
A
Increases output/ efficiency/ saves time.
6
Q
What does specialisation mean?
A
Specialisation is when people are working on their work and have occupation of this work.
7
Q
What is a monopoly?
A
Monopoly is a single supplier that constitutes the entire industry.
8
Q
A
9
Q
Disposable income
A
Income that is available to someone over a period of time to spend; it includes state benefits but excludes direct taxes.
