Calculating costs, revenue and profit Flashcards
1
Q
What are variable costs?
A
costs which vary directly with output in the short run.
2
Q
What are fixed costs?
A
costs which do not very with output in the short run.
3
Q
How do you calculate the total revenue?
A
TR= selling price × no. of units sold (volume)
4
Q
Define selling price (sp/unit)
A
the amount paid by a customer to purchase one unit of a product
5
Q
Define Total Revenue
A
income received from an organisations business activities
6
Q
State 3 Fixed costs
A
stationary expenditure
advertising expenditure
property rent
7
Q
State 3 variable costs
A
raw materials
direct wages
power
8
Q
How do you calculate the Selling Price/unit?
A
Sp/unit= TR ÷ No. of units (output)
9
Q
How do you calculate the Quantity?
A
Qty = TR ÷ Sp/unit
10
Q
What is Quantitive?
A
numbers financially
11
Q
What is Qualitative?
A
non-financial
