Cost, Revenue And Profit Flashcards
1
Q
Fixed cost=
A
Doesn’t change depending on the level of output eg: rent
2
Q
Variable Cost=
A
Can change depending on the level of output eg: raw materials
3
Q
Direct Cost=
A
Goes into the actual making of the product
4
Q
Opportunity Cost=
A
Measures the cost of any choice in terms of the next best alternative forgone
5
Q
Revenue=
A
The cash that flows into a business from their SALES
6
Q
How do you calculate profit?
A
Total revenue- Total cost
