Chapter 20- costs, revenue, profit Flashcards
1
Q
Profit
A
Is the money remaining from sales revenue after all costs have been paid
Sales revenue -cost
2
Q
Sales revenue
A
Is money earned by selling goods and services. Calculated by multiplying sales volume by sales price
3
Q
Sales volume
A
Refers to number of goods or services sold by a business in a period of time
4
Q
Selling price
A
Is the amount changed to a customer for the purchase of a good or service
5
Q
Loss
A
When revenue earned is less than total costs
6
Q
Contribution
A
Is the amount each sale raises towards fixed costs or profit
Selling price -variable costs
7
Q
Break even
A
Is the volume of sales at which a business breaks even, so total revenue matches costs exactly
8
Q
Break even analysis
A
Is the calculation and interpretation of information about the break even sales level
