Costs, Revenues And Profits Flashcards
1
Q
Define profit
A
Overall amount of money that a business makes(or loses) from their business activities
2
Q
Gross profit equation
A
Revenue - direct costs
3
Q
Net profit equation
A
Gross profit - expenses
4
Q
What is cost of sales
A
Costs involved in directly producing the goods or service that you actually sell
5
Q
Define total costs
A
The sum of all costs incurred by a firm in producing a certain level of ojutput
