2.2.2 : Sales , Revenues + Costs

Question 1

What is demand ?

Answer 1

The amount of a product that customers are prepared to buy

Question 2

What is revenue ?

Answer 2

The amount of a product that customers actually buy from a firm

Question 3

What affects demand and revenue ?

Answer 3

Prices , incomes tastes + fashions , competitor actions , social&demograhic , seasonal changes , changing technology , government decisions

Question 4

What are the two main ways of increasing revenue for a business ?

Answer 4

Increasing quantity sold
Achieve a higher selling price

Question 5

What are the problems in estimating costs ?

Answer 5

Some costs are too hard to estimate e.g. raw materials - affected by wastage , product returns or refunds - affected by quality

Question 6

What are the problems in estimating costs ?

Answer 6

Some costs are too hard to estimate e.g. raw materials - affected by wastage , product returns or refunds - affected by quality

Question 7

What is profit ?

Answer 7

Profit is the reward or return for taking risks + making investments.

Question 8

Why is prom important to a business ?

Answer 8

A return on investment
A reward for taking risks
A key source of finance
A measure of business success
A motivating factor or incentive