Financial Planning Flashcards
(9 cards)
1
Q
What is sales revenue
A
The amount of money a business will generate through selling its goods or service
2
Q
What is the equation for sales revenue
A
Sales revenue=sales volume x selling price
3
Q
What is total cost
A
the amount of money a business will have to spend to generate sales
4
Q
What is a fixed cost
A
Costs that don’t change according to output
5
Q
What is a variable cost
A
Costs that change in proportion to output
6
Q
What are examples of fixed cost
A
1.rent
2.salaries
3.heating bills
4.mortgage payments
5.interest
7
Q
What are examples of variable cost
A
1.raw materials
2.wages
3.fuel
4.packaging
5.power
8
Q
What is the total cost formula
A
Total cost= fixed cost x total variable cost
9
Q
What is the profit formula
A
Profit= sales revenue - total cost
