Business Revenue, Costs and Break Even Flashcards
1
Q
Revenue
A
The money a business makes from sales.
2
Q
Turnover
A
Revenue
3
Q
TR =
A
P x Q
4
Q
Fixed costs
A
Costs that do not vary with output.
5
Q
Variable costs
A
Costs that vary with output.
6
Q
TC =
A
FC + VC
7
Q
Difference between cost and price
A
Cost is what the firm spends to make the product
Price is what the consumer spends to buy the product
8
Q
Indirect costs
A
Fixed costs
9
Q
Direct costs
A
Variable costs
10
Q
Examples of fixed costs
A
Rent
Mortgage
11
Q
Examples of variable costs
A
Raw materials
Petrol
12
Q
Semi-variable costs
A
A combination of fixed costs and variable costs such as mobile phone contracts.
13
Q
Profit
A
The difference between total revenue and total costs.
14
Q
Profit =
A
TR - TC
15
Q
CPU
A
Contribution per unit
