Revenues, cost and profit

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Flashcards on Revenues, cost and profit , created by Maxwell Pearcy on 24/01/2017.
Maxwell Pearcy
Flashcards by Maxwell Pearcy, updated more than 1 year ago
Maxwell Pearcy
Created by Maxwell Pearcy over 7 years ago
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Question Answer
What is Revenue? Revenue is the amount of income received from selling goods or services over a period of time.
What is the formula to work out revenue? Price x Quantity = Total revenue
What 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.
What is the formula to work out variable costs? Variable costs = Cost of one unit x Quantity produced
Total Costs Total Costs are all of the costs of the business. It can be calculated using the formula: Fixed Costs + Variable Costs = Total Costs
If the fixed costs are £400 and the variable costs are (£5 x 100) then what are the total costs? £400 + £500 = £900
Profit and loss Profit 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.
What is the formula to work out profit and loss Total Revenue - Total costs = Profit or Loss £1000 - £900 = £100 profit
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