Calculating costs, revenue and profit Flashcards
1
Q
What is profit?
A
What is left after costs have been deducted from revenue.
2
Q
Equation for profit
A
Total revenue - total costs
3
Q
What are costs?
A
These are the expenditures made by a business as part of its trading operations.
4
Q
What is revenue?
A
The value of sales made during a trading period
5
Q
Equation for revenue
A
Selling price x number of items sold
6
Q
What are fixed costs?
A
Costs that do not change with output
7
Q
What are variable costs?
A
Costs that change with output
8
Q
What are total costs?
A
Fixed costs + variable costs.
