sales, revenue and cost Flashcards
what is sales volume
quantity of products sold
how is sales volume calculated
sales revenue/selling price
what is sales revenue
value of output sold over specific time period
how is sales revenue calculated
price x quantity sold
what is outsourcing
pay someone outside of business to do a job e.g web designer
what are raw materials
materials required to make product
what are fixed costs
costs that don’t vary with output
what are variable costs
costs that vary with output
what is a stepped up fixed cost
a fixed cost that increases e.g rent
how are total sales calculated
fixed costs plus variable costs
what are semi variable costs
costs that fit in neither category e.g salaries are fixed but when overtime is payed it becomes semi variable
what are direct cost
costs associated with particular product or process e.g packaging
what are indirect costs
costs as a result of the whole business e.g rent, insurance
how is average cost per unit calculated
total cost/output
how is profit calculated
total revenue-total costs
