Costs, Revenue, Profit and Loss Flashcards
What is the equation for Total Cost?
Fixed Cost + Variable Cost
What is Fixed Cost?
Costs that don’t vary with amount of business activity
What is Variable Cost?
Costs that do vary with amount of business activity
What is the equation of Average Cost?
Total Cost/Quantity Produced
What does it mean when lowering costs?
Firms can make more profit
What is the equation of Total Revenue?
Quantity Sold x Price
What is the equation for Average Revenue?
Total Revenue/Quantity Sold (price)
What is the equation for Profit?
Total Revenue - Total Costs
What is Profit?
achieving the highest maximization of money possible
What is Business Objective?
The goal business that firms want to achieve
What is Variable?
Things that change
What is sales growth?
expanding in sales
what is Costs?
Expenses incurred by business
