2.2.2 Sales, Revenue And Costs Flashcards
1
Q
Define revenue
A
The value of sales made during a trading period as well as products sold on credit and in cash
2
Q
How do you calculate sales revenue
A
Price x quantity sold
3
Q
Define variable costs
A
Costs of a business that change directly with output
4
Q
How do you calculate average costs
A
Total costs
——————
Output
5
Q
How do you calculate pricy
A
Total revenue- total costs
6
Q
What is important in measuring a businesses success
A
Profit margin
- shows how efficient a business can be
