unit 1 costs , profit, revenue Flashcards Preview

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Flashcards in unit 1 costs , profit, revenue Deck (11):
1

name 2 name types of costs

fixed and variable

2

fixed costs

these are the costs that stay the same even if the business changes the amounts it produces

3

examples of fixed costs

rent
salaries
utility
insurance

4

variable costs

these are the cost that change as output change

5

examples of variables change

materials
packaging
ingredients

6

total variable costs

quantity x variable costs

7

total costs

fixed cost + variable costs

8

profit

total renevenue - total costs

9

if revenue is higher a business make a?

profit

10

if revenue is lower than costs a business makes a

loss

11

revenue

quantity sold x selling price