2.2.2 Sales, Revenue And Costs Flashcards
1
Q
What is the sales volume formula
A
SV = Sales revenue / Selling price
2
Q
What is the sales revenue formula?
A
SR = Selling price x Sales volume
3
Q
What are fixed costs?
A
Fixed costs are costs that do NOT vary with the level of output.
4
Q
Give some examples of fixed costs.
A
- Rent payments
- Mortgage payments
- Loan payments
- Insurances
- Lease of machinery or van
- Salaries of managers
5
Q
What are variable costs?
A
Variable costs are costs that do vary with level of output.
6
Q
What are some examples of variable costs?
A
- Cost of stock hold
- Fuel
- Raw materials
- Packaging
- Wages
7
Q
What is the total variable cost formula?
A
Total variable cost (TVC) = Average variable cost (AVC) x Quantity sold (Q)
8
Q
What is the total costs formula?
A
Total costs (TC) = Variable costs (VC) + Fixed costs (FC)
9
Q
How to calculate changes
A
Change / Original X 100
