Form 3 Flashcards
(10 cards)
What are start up costs?
Costs that occure only once when starting a buisness eg: furniture
What are Running costs?
Are costs that occure in the day to day when running a buisness eg: bills
What are the two different types of running costs?
Fixed and varible costs
What are fixed costs ?
Are costs that do not change with the quantity of output sold or produced. Eg: bills
What are variable costs?
Are costs that do change with the quantity of output produced or sold. Eg: an amount of mugs
How to calculate total cost?
Fixed cost
How to calculate total cost?
Fixed cost + varible cost = total cost
How to calculate average cost?
Av cost = total cost divided by numbe rof units produced
How to calculate revenue?
total revenue = selling price per unit x quantity sold
How to calculate profit
Profit= total revenue - total cost
