Unit 3.3 Costs and Revenues Flashcards
1
Q
Types of costs
A
Fixed costs
Variable costs
Direct costs
Indirect costs
2
Q
Fixed costs
A
costs that do not change with the amount of goods and services produced
3
Q
Variable costs
A
costs that can change with the number of goods and services produced
4
Q
Direct costs
A
costs that can be identified with the production of a specific good or service
5
Q
Indirect costs
A
costs that cannot be identified with the production of a specific good or service
6
Q
Revenue
A
a measure of money generated from the sale of good and services
7
Q
Total revenue (formula)
A
price per unit * quantity sold
