2.2.2 sales revenue and costs Flashcards
1
Q
sales volume formula
A
sales revenue / price
2
Q
sales revenue
A
money into the business through sales
3
Q
sales revenue formula
A
price x quantity
4
Q
fixed costs
A
costs that do NOT vary with level of output or sales
5
Q
calculating fixed costs
A
costs are the same at all levels of production
rent, insurance, salaries
6
Q
variable costs
A
costs that DO vary with level of output or sales
7
Q
calculating variable costs
A
these costs change with the amount of goods being produced
raw materials, fuel
