2.1 Flashcards
1
Q
What is gross profit?
A
The money left over after the cost of producing goods or services has been taken away from the revenue
2
Q
What is net profit?
A
The money left over after all the expenses have been taken away from the revenue
3
Q
What is break-even?
A
The point where total revenue equals total costs
4
Q
What is cash flow?
A
The flow of money into and out of a business
5
Q
What is the ratio for total costs?
A
Fixed costs + Variable costs
6
Q
What is the ratio for revenue?
A
Selling Price X Units sold
7
Q
What is the ratio for gross profit?
A
Revenue – Total variable cost
8
Q
What is the ratio for net profit?
A
Gross Profit – Expenses
9
Q
What is the ratio for net profit margin/ratio?
A
(Net profit/revenue) x 100
10
Q
What is the ratio for gross profit margin/ratio?
A
(Gross profit/revenue) X 100
11
Q
A
