unit 1 costs , profit, revenue Flashcards
1
Q
name 2 name types of costs
A
fixed and variable
2
Q
fixed costs
A
these are the costs that stay the same even if the business changes the amounts it produces
3
Q
examples of fixed costs
A
rent
salaries
utility
insurance
4
Q
variable costs
A
these are the cost that change as output change
5
Q
examples of variables change
A
materials
packaging
ingredients
6
Q
total variable costs
A
quantity x variable costs
7
Q
total costs
A
fixed cost + variable costs
8
Q
profit
A
total renevenue - total costs
9
Q
if revenue is higher a business make a?
A
profit
10
Q
if revenue is lower than costs a business makes a
A
loss
11
Q
revenue
A
quantity sold x selling price
