sales,revenue and costs Flashcards

1
Q

whats sales volume

A

number of sales a business has made

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2
Q

calculation for sales volume

A

total sales revenue/selling price per unit

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3
Q

whats sales revenue

A

amount of money the business makes frim the sales of a product or service

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4
Q

calculation for sales revenue

A

price x quantity of output

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5
Q

what helps decision making

A

accurate and reliable cost information

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6
Q

what is a short run cost

A

the period of time when at least one factor of production is fixed

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7
Q

what is long run

A

all factors of production can vary

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8
Q

what are fixed costs

A

costs that stay the same no matter the output in the short term

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9
Q

examples of fixed costs

A

council tax
insurance
rent
electricity

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10
Q

why might fixed costs increase

A

inflation

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11
Q

whats a variable cost

A

costs which change depending on output

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12
Q

examples of variable costs

A

raw materials
fuel
packaging
wages

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13
Q

what are semi-variable costs

A

costs that have both fixed and variable elements

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14
Q

examples of semi variable costs

A

labour
telephone costs

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15
Q

annual interest calculation

A

total loan amount x interest rate

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16
Q

total cost calculation

A

fixed + variable

17
Q

2 types of costs

A

direct and indirect

18
Q

what are direct costs

A

can be identified with a particular product or process

19
Q

examples of direct costs

A

raw materials
packaging
direct labour

20
Q

what are indirect costs

A

costs derived from overhead charges

21
Q

examples of indirect costs

A

rent
insurance
salaries of office staff
audit fees

22
Q

what are average unit costs

A

cost per unit of production

23
Q

average cost calculation

A

total cost/ output

24
Q

profit/loss calculation

A

total revenue- total costs