Putting an idea into practice (Edexcel GCSE Business): Flashcards
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12 cards from this deck
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Practise the cards
12 cards from this deck
Revenue definition
Revenue definition
Total income from selling goods/services in a time period
Revenue formula
Revenue formula
Price × Quantity
Other names for revenue
Other names for revenue
Sales revenue or turnover
Fixed costs definition
Fixed costs definition
Costs that stay constant regardless of production level
Examples of fixed costs
Examples of fixed costs
Rent, business rates, insurance, manager salaries
Variable costs definition
Variable costs definition
Costs that change directly with amount produced
Examples of variable costs
Examples of variable costs
Raw materials, packaging, production wages, electricity
Variable costs formula
Variable costs formula
Cost per unit × Quantity produced
Total costs formula
Total costs formula
Total fixed costs + Total variable costs
What happens to fixed cost per unit as production increases?
What happens to fixed cost per unit as production increases?
It decreases
Two main types of business expenses
Two main types of business expenses
Fixed costs and variable costs
Profit formula
Profit formula
Revenue - Total costs