Revenue, Cost and Profit Flashcards
1
Q
What is revenue?
A
The total value of the sales made within a period of time, such as a month.
2
Q
How is the revenue calculated?
A
Selling price x Unit sold
3
Q
What is the difference between FIXED COSTS and VARIABLE COST?
A
- Variable costs may include labor, commissions, and raw materials.
- Fixed costs remain the same regardless of production output. Fixed costs may include lease and rental payments, insurance, and interest payments.
4
Q
Give 3 examples of fixed costs
A
Rent, wage, advertising
5
Q
Give 2 examples of variable costs
A
Raw materials, packaging
6
Q
What are Total Costs?
A
(Total)Fixed Costs + (Total)Variable Costs
7
Q
What is profit?
A
