1.3.2 Business revenues, costs and profits Flashcards
1
Q
Revenue
A
Quantity X selling Price
2
Q
Total Costs
A
Variable Costs+Fixed Costs
3
Q
Variable Costs
A
Variable cost per unit of output X Total Quantity
4
Q
Profit
A
Revenue-Total Costs
5
Q
Break-Even
A
Fixed Costs/Selling Price-Variable Costs
6
Q
Margin of Safety
A
Actual output-Break-Even output
7
Q
Importance of Profit
A
Business Growth
