financial terms Flashcards
1
Q
revenue
A
the amount of money that the business earns
2
Q
costs
A
the amount of money that the business has to spend
3
Q
profit
A
the money left over after costs are taken away (profit = revenue - costs)
4
Q
loss
A
when costs are greater than revenue the business makes a loss
5
Q
fixed costs
A
costs that don’t change with output eg the cost of renting a building
6
Q
variable costs
A
costs that will increase as output increases eg the cost of raw materials
