Profit/Loss

Question 1

Costs

Answer 1

Money coming out of business
-Expenses
-Expenditure
-Outflow
Total costs=Variable costs+ Fixed costs

Question 2

Sales

Answer 2

Money coming in for business
-Revenue
-Income
-Receipts
-Turnover
Sales Revenue=Quantity*Selling price
      (or)
Sales revenue=Profit+ Total costs

Question 3

Variable Costs

Answer 3

Costs(expenses)which vary or change per output
Total Variable cost=Quantity*Variable cost per unit
Examples: Stock, Packaging, Electricity, Wage

Question 4

Fixed Costs

Answer 4

Costs(expenses)which are fixed and do not change per output
Examples: Rent, Salaries, Insurance
Fixed costs=Total costs-Variable costs

Question 5

Loss

Answer 5

-Deficit

Question 6

Profit

Answer 6

Money left over from sales after costs have been deducted
-Surplus
Profit=Sales revenue-Total Costs

–>Net Profit, Gross Profit

Question 7

Gross Profit

Answer 7

Gross Profit=Sales revenue-Cost of goods(Total Variable Costs)

Question 8

Net profit

Answer 8

Net profit=Gross Profit-Expenses
(or)
Net profit=Sales Revenue-Total Costs