Cost Flashcards
1
Q
What is a Cost?
A
Costs is the expenses that a business has to pay out.
.
2
Q
What is a Revenue?
A
Revenue is the sales of a business has coming in
3
Q
Costs can be?-
A
Cost can be fixed or variable.
4
Q
What does fixed mean?
Give an example.
A
Fixed means they do not change per output. For example: Rent, salaries; insurance
5
Q
What is a Variable?
Give an Example.
A
Variable means that they change per out output. For example: Wages, stock, packaging and electricity
6
Q
What is a formula of total costs?
A
Total Costs= Fixed costs + Variable costs
