3.1- Cost, Revenue And Profit Flashcards
1
Q
What is fixed costs?
A
The costs that stay the same even when output increases
2
Q
What is variable costs?
A
Costs that increase when output increases
3
Q
How do you calculate total costs?
A
Fixed costs + variable costs
4
Q
How do you calculate profit ?
A
Sales revenue - total costs
5
Q
How do you calculate sales revenue?
A
Quantity sold x selling price
6
Q
How do you calculate total variable costs?
A
Variable cost per unit x output
7
Q
Give examples of fixed costs ?
A
Leasing machinery
Rents and rates
Salaries
Heating and lighting
Administration
8
Q
Give examples of variable costs?
A
Raw materials
Wages
Petrol
