EQUATIONS Flashcards
definition of revenue
the income that a firm receives from selling its goods and services
sales revenue
selling price per item x number sold
definition of variable costs
costs that will increase as the firm expands output
eg raw materials
definition of fixed costs
do not vary with output
eg rent, insurance
total variable costs
variable cost per item x number sold
profit
sales revenue -total costs
cost per unit
total costs/ number sold
percentage change
change(difference) / original amount * 100
market share
business’s sales / total market share * 100
market growth
change in market size / original market size * 100
total cash inflow
add all inflows
total cash outflow
add all outflows
net cash flow
cash flow - cash outflows
opening balance
closing balance of previous month
net assets
(current assets + non-current assets) - (current liabilities + non-current liabilities)
