CH 16 Business costs, Revenue & Profit Flashcards
1
Q
What are costs?
A
Expenses that must be met when setting up and running a business
2
Q
What are fixed costs?
A
Costs that do not vary with level of output
3
Q
What are variable costs?
A
Costs that change when output levels change
4
Q
What are total costs?
A
Fixed costs and variable costs added together
5
Q
How do you calculate average costs?
A
Total cost/ quantity produced
6
Q
How do you calculate total revenue?
A
Price x quantity
7
Q
How do you calculate profit?
A
Total revenue - Total costs
