Costs And Revenues

Costs And Revenues

1. Structure of costs

   • What proportion of the total costs of the business is in fixed costs and what proportion is in variable costs.

2. Variable costs

   • The costs vary with the number of something ordered or produced.

3. Fixed costs

   • Costs that stay the same no matter how much of something is ordered or produced.

4. Semi-variable costs

   • Costs where parts are fixed and other can vary such as a delivery van. The tax and mot are fixed costs each year no matter how many deliveries are done whereas there will be a higher cost if more petrol is used.

5. How are costs calculated?

   • Fixed costs per month + variable costs per month = total costs for the month.