Flashcards
Revenues, cost and profit
Cards in this deck (8)
- 1What is Revenue?Revenue is the amount of income received from selling goods or services over a period of time.
- 2What is the formula to work out revenue?Price x Quantity = Total revenue
- 3What are the different types of costs?Fixed Costs: They do not vary with the output produced by a business, e.g. salaries and business rates.
Variable costs: They change directly with the number of products made, e.g. raw materials and labour. - 4What is the formula to work out variable costs?Variable costs = Cost of one unit x Quantity produced
- 5Total CostsTotal Costs are all of the costs of the business.
It can be calculated using the formula:
Fixed Costs + Variable Costs = Total Costs
- 6If the fixed costs are £400 and the variable costs are (£5 x 100) then what are the total costs?£400 + £500 = £900
- 7Profit and lossProfit occurs when revenues of a business are greater that its total costs. If a business's costs are greater than its revenues then it will make a loss.
- 8What is the formula to work out profit and lossTotal Revenue - Total costs = Profit or Loss
£1000 - £900 = £100 profit
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- Flashcards on Revenues, cost and profit , created by Maxwell Pearcy on 24/01/2017.
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- Maxwell Pearcy
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