revenue, cost, profit

Question 1

fixed cost

Answer 1

Costs that do not change in line with changes in output.
an example would be advertising costs

Question 2

variable cost

Answer 2

Variable costs change and are linked to the level of output.

Question 3

total cost

Answer 3

all the costs added together that a business incurs in making a product or providing a service

Question 4

revenue

Answer 4

also referred to as sales revenue or turnover. This is the total amount of income made from selling a product or service.

Question 5

profit

Answer 5

This is made when the revenue exceeds the total costs. If a business has total costs that are greater than revenue it is called a loss

Question 6

interest

Answer 6

a charge (%) on loaned (borrowed) money or the return paid on savings

Question 7

revenue formula

Answer 7

Selling price X Number of units sold

Question 8

fixed variable cost formula

Answer 8

Fixed cost = costs do not change
Variable costs- Variable cost per unit X Number of units sold

Question 9

total costs formula

Answer 9

Fixed costs + Variable costs

Question 10

profit formula

Answer 10

Revenue – Total costs

Question 11

interest formula

Answer 11

(Total repayment – Borrowed amount) / Borrowed amount x 100