Financial Terms Flashcards
1
Q
Profit
A
Money left after expenses
2
Q
Fixed costs
A
Costa that don’t change
3
Q
Variable costs
A
Do change based on the number of products sold
4
Q
Revenue
A
Money the business gets
5
Q
Costs
A
Money the business spends
6
Q
Profitability ratios
A
A way to work out how well a company is generating profit
7
Q
Gross profit
A
Profit just based on selling products
8
Q
Net profit
A
The final profit
9
Q
Break even
A
Earning enough to cover all expenditures. Money earned is the same as the money spent
10
Q
Selling price per unit
A
The amount your business sells each complete product for
11
Q
Variable cost per unit
A
How much it costs your business to buy in or make each product
12
Q
Fixed costs
A
Costs that don’t change no matter how many products you sell
