Sales Revenue And Costs Flashcards
1
Q
Sales Volume formula
A
Sales volume = Sales revenue / selling price
2
Q
Sales Revenue formula
A
Sales revenue = Selling price x Sales volume
3
Q
Fixed costs
A
Fixed costs are costs that do NOT vary with the level of output e.g. rent
4
Q
Variable costs
A
Variable costs are costs that do vary with level of output.
5
Q
Total variable cost formula
A
Total Variable Costs = Average Variable Costs x Quantity
6
Q
Total costs formula
A
Total cost = variable costs + fixed costs
