1.3.2: revenues, costs & profits Flashcards
1
Q
margin of safety
A
the amount sales can fall before the break even point is reached & the business makes no profit.
2
Q
revenue
A
any money that a business makes from selling its goods and services
3
Q
break even
A
the point at which revenue and total costs are the same, meaning the business is making neither a profit nor a loss.
4
Q
profit
A
any revenue left over after all the business’ costs have been paid.
5
Q
interest
A
a % of the amount of money that has to be paid back in addition to the original amount borrowed.
6
Q
fixed costs
A
costs the business must pay regardless of output.
(salaries, insurance, rent, electricity)
7
Q
variable costs
A
costs that change in proportion depending on how much a company produces/sells.
(wages, raw materials)
8
Q
costs
A
anything a business pays for
