revenue and expenditure key words

Question 1

revenue formula

Answer 1

revenue(from sales)= price x number sold(output)

Question 2

expenditure

Answer 2

the money paid out by a business (also called costs)

Question 3

start up costs

Answer 3

money paid out to set up a business

Question 4

running costs

Answer 4

money used in the day to day running of the business(also known as operating costs and overheads)

Question 5

direct costs

Answer 5

costs that are directly related to output, eg cost of stock, raw material, tools etc

Question 6

indirect cost

Answer 6

costs not related to output, eg rent, uniform etc…

Question 7

fixed costs

Answer 7

costs that stay the same

Question 8

variable costs

Answer 8

costs that change depending on output (how much you make or sell)

Question 9

variable formula

Answer 9

variable cost= variable costs per unit x output

Question 10

another formula

Answer 10

total costs = fixed costs + variable costs

Question 11

revenue

Answer 11

the money a business receives. This mainly comes from selling a product or service