2.2.2 Sales, Revenue, Costs Flashcards
1
Q
Define output?
A
sold in order to generate sales revenue
2
Q
Define sales?
A
measure of how many products are sold
3
Q
Define revenue?
A
stream of income generated by sales
4
Q
Define costs?
A
Money used to buy things like raw materials
5
Q
Calculation for sales volume?
A
unit price
6
Q
Calculation for sales revenue?
A
selling price x sales volume
7
Q
Define fixed costs?
A
not linked directly to level of output, and short term eg. rent
8
Q
Define variable costs?
A
linked directly to level of output - cost of resources
9
Q
Calculation for total cost?
A
Total fixed costs - total variable costs
10
Q
Calculation average variable cost?
A
output
11
Q
Calculation of average fixed costs?
A
output
12
Q
Define profit?
A
difference between the value of total sales and costs involved
13
Q
Calculation of profit?
A
total revenue - total costs
