revenue, costs and profits Flashcards
What is revenue?
total capital generated in a business from selling products/services
How to work out revenue?
total revenue = Selling price per unit (S.P.P.U) x Number of units sold
What is revenue also know as?
cash sales, credit sales
What is are costs?
the fixed and variable costs of a business.
How to work out costs?
fixed costs + variable costs = total costs
What are costs also known as?
expenses, fees, payments
What is profit?
capital made by the organisation within the financial year
How to work out profit?
Total profit = total revenue - total costs
% change in (profit) = (difference/original) x100
What is profit also known as?
performance health, margin
What are some examples of fixed costs and variable costs?
fixed costs = rent, salaries, mortgages, business rates
variable costs = wages, utilities, materials, advertising
