Theme 1.3 - Costs And Revenues

Question 1

What is the revenue?

Answer 1

The total amount of money a business receives from sales

Question 2

What is profit?

Answer 2

The amount of money a business has left after costs

Question 3

What are costs?

Answer 3

Things the business has to pay for with its revenue

Question 4

What are fixed costs?

Answer 4

Costs that do not vary with the amount the business produces

Question 5

What are variable costs?

Answer 5

Costs that vary with the amount the business produces

Question 6

What is the formula for revenue?

Answer 6

Quantity x price

Question 7

What is breakeven?

Answer 7

The point at which the business‘ revenue matches its costs

Question 8

What is the formula for the breakeven point (units) ?

Answer 8

(Total costs / price) - additional variable costs

Question 9

What is the formula for breakeven point (money) ?

Answer 9

Breakeven point in units x sales price

Question 10

What is the margin of safety?

Answer 10

The gap between a business‘ minimum sales target and their breakeven point