11 - Calculating Costs, Revenues And Profits Flashcards
0
Q
Revenue
A
The value of sales made during a trading period.
Total revenue = selling price x no. Of items sold
1
Q
Profit
A
What is left after costs have been deducted from revenue.
Profit = total revenue - total cost
2
Q
Costs
A
These are the expenditures made by a business as part of its trading operations
3
Q
Fixed costs
A
Costs that do not change with the level of output or sales
4
Q
Variable costs
A
Costs that change directly with the level of output or sales
5
Q
Total costs
A
Fixed costs + variable costs
