Sales, revenue and costs Flashcards
1
Q
What is the formula and definition of sales volume?
A
This is the quantity of products sold in a specified period.
Sales volume = sales revenue/ selling price
2
Q
What is the sales revenue definition and formula?
A
Money into your business through sales is called sales revenue.
Sales revenue = selling price x sales volume
3
Q
Define fixed costs.
A
Fixed costs are costs that do NOT vary with the level of output.
4
Q
Define variable costs.
A
Variable costs are costs that do vary with level of output.
5
Q
What is the total variable costs formula?
A
TVC = average variable costs X sales volume or quantity sold
6
Q
What is the total costs forumla?
A
This is the sum of all the costs in reaching a certain level of output.
Total costs = variable costs + fixed costs
