Profit/Loss Flashcards
1
Q
Costs
A
Money coming out of business -Expenses -Expenditure -Outflow Total costs=Variable costs+ Fixed costs
2
Q
Sales
A
Money coming in for business
-Revenue
-Income
-Receipts
-Turnover
Sales Revenue=Quantity*Selling price
(or)
Sales revenue=Profit+ Total costs
3
Q
Variable Costs
A
Costs(expenses)which vary or change per output
Total Variable cost=Quantity*Variable cost per unit
Examples: Stock, Packaging, Electricity, Wage
4
Q
Fixed Costs
A
Costs(expenses)which are fixed and do not change per output
Examples: Rent, Salaries, Insurance
Fixed costs=Total costs-Variable costs
5
Q
Loss
A
-Deficit
6
Q
Profit
A
Money left over from sales after costs have been deducted
-Surplus
Profit=Sales revenue-Total Costs
–>Net Profit, Gross Profit
7
Q
Gross Profit
A
Gross Profit=Sales revenue-Cost of goods(Total Variable Costs)
8
Q
Net profit
A
Net profit=Gross Profit-Expenses
(or)
Net profit=Sales Revenue-Total Costs
