Revenues, Costs and Profit Flashcards
1
Q
Profit
A
Total revenue - total costs
2
Q
Revenue
A
selling price x quantity sold
3
Q
Total costs
A
variable costs + fixed costs
4
Q
Variable costs
A
Costs that can change e.g. wages, raw materials, commission on sales
5
Q
Fixed costs
A
Costs that usually don’t change e.g. rent, salaries, machinery
6
Q
Break-even analysis
A
fixed costs/selling price - variable costs
7
Q
Interest
A
the charge made by the banks for the cash they have lent to a business
8
Q
Net Cash Flow
A
the movement of cash into and out of a business
9
Q
Net cash flow
A
Cash Inflow + Cash Outflow
