Learning aim A Flashcards
What are start up costs?
Money paid out by a business for items it needs, before they start trading
2 examples of a start up cost
Buying a cash register
Buying and installing a sign
What are operating/running costs?
The expenses a business has in its day to day operations
2 examples of operating/running costs
Staff wages
Utility bills, gas and electricity
What are fixed costs?
Costs that stay the same no matter how busy the business is
What is the formula for total costs?
Fixed costs + variable costs
What is revenue?
Money received by a business, most is from selling products
What is the formula for revenue?
Number of sales x price per unit
What is expenditure?
Money the business pays out
2 examples of overheads
Wages
Rent
2 types of expenditure (not overheads)
Advertising
Internet service
What is the formula for profit?
Revenue - expenditure
