3.2 Costs and Revenues Flashcards
1
Q
Costs
A
The total expenditure incurred by a business in order to run its operations
2
Q
Revenue
A
A measure of the money generated from the sale of goods and services
3
Q
Revenue Streams
A
Money coming into a business from its various business activities
4
Q
Profit
A
The positive difference between total revenue and total costs
5
Q
Fixed costs
A
Costs that do not change with the amount of goods or services produced
6
Q
Variable costs
A
Costs that change with the number of goods or services produced
7
Q
Semi-variable costs
A
Costs comprising both fixed and variable components
8
Q
Direct costs
A
Costs that are specifically attributed with the production of specific goods or services
9
Q
Indirect costs
A
Costs that are not clearly attributed with the production of specific goods or services
