29. Sales, Revenue & Cost Flashcards
Ways of improving sales volume:
- Advertising
- Promotion
- Improved targeting
- Extend product range
- Extend distribution networks
- Develop relationship with customers
Ways of improving sales revenue:
- Changing price
- Adding complementary service or products
Average cost or unit cost
The cost of producing one unit, calculated by dividing the total cost by the output
fixed cost
a cost that does not change as a result of a change in output in the short run
long run
the time period where all factors of production are variable
profit (loss)
the difference between total costs and total revenue. It can be negative.
sales revenue
the value of output sold in a particular time period. It is calculated by price x quantity of output
sales volume
the quantity of output sold in a particular time period
semi - variable costs
costs that consist of both fixed and variable elements
short run
the time period where at least one factor of production is fixed
total cost
the entire cost of producing a given level of output
total revenue
the amount of money the business receives from selling output
variable costs
costs that rise as output rises