Revenue,cost,profit Flashcards
1
Q
Revenue definition
A
Income the business receives from sales
2
Q
Revenue formula
A
Price x quantity sold
3
Q
Costs definition
A
What a business has to pay to continue operating
4
Q
Fixed cost
A
Costs that stay the same no matter how much the business sells
5
Q
Examples of fixed costs
A
Rent
Salaries
Utility bills
Loan repayments
6
Q
Variable costs definition
A
Costs that change depending on how much the business sells
7
Q
Variable cost examples
A
Raw materials,packaging supplies
8
Q
Total cost formula
A
Fixed costs + variable costs
9
Q
Profit definition
A
The amount of revenue left over once costs have been deducted
10
Q
Profit formula
A
Total revenue - total cost
