Cost Revenues profit (yr10)

Question 1

What are the two main types of cost ?

Answer 1

Fixed costs

Variable costs

Question 2

What are fixed costs

Answer 2

These are costs that stay the same even when the business changes the amount it produces (output)

Question 3

What’s an example of fixed costs ?

Answer 3

Rent

Salaries

Insurance

Question 4

What are variable costs ?

Answer 4

These are costs that change as output changes

The more you sell , the more you need

Question 5

What’s an example of variable costs ?

Answer 5

Ingredient labels

Materials

Packaging

Question 6

How do calculate total variable costs?

Answer 6

Quantity sold X variable cost per unit

Question 7

How do you calculate total costs?

Answer 7

Fixed costs + total variable costs

Question 8

How do you calculate profit ?

Answer 8

Fixed costs + total variable costs

Question 9

If revenue is higher than costs a business makes a…

Answer 9

…profit

Question 10

If revenue is lower than costs a business makes a..

Answer 10

.. loss

Question 11

How can a business increase profit ?

Answer 11

Decrease prices

Decrease costs

Sell more

Question 12

What is sales revenue ?

Answer 12

The money a business makes from selling its good and services

Question 13

What is the formula for sales revenue?

Answer 13

Quantity sold X selling price