The Purpose and Nature of Business (AQA A-Level Business): Flashcards
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Practise the cards
10 cards from this deck
Profit definition
Profit definition
Financial reward for risk; money left after costs from revenue
Revenue formula
Revenue formula
Units sold × Price per unit
Alternative terms for revenue
Alternative terms for revenue
Turnover, sales turnover, sales revenue
Variable costs definition
Variable costs definition
Costs changing in direct proportion to output level
Examples of variable costs
Examples of variable costs
Direct labour, raw materials
Fixed costs definition
Fixed costs definition
Costs remaining constant regardless of output in short term
Examples of fixed costs
Examples of fixed costs
Rent, rates, director salaries
Total costs formula
Total costs formula
Fixed costs + Variable costs
Profit formula
Profit formula
Total revenue - Total costs
Key detail about variable costs & output
Key detail about variable costs & output
They vary DIRECTLY with output (not just 'vary')