Operations and Finance (LC 2027) (Leaving Cert Business): Flashcards
📚Flashcards
Practise the cards
10 cards from this deck
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Practise the cards
10 cards from this deck
Costs
Costs
Expenses a business pays to operate & produce goods/services
Fixed costs
Fixed costs
Expenses that stay constant regardless of production level
3 examples of fixed costs
3 examples of fixed costs
Rent, insurance premiums, salaries of permanent staff
Variable costs
Variable costs
Costs that change directly with production/activity level
3 examples of variable costs
3 examples of variable costs
Raw materials, direct labour wages, energy costs
Revenue
Revenue
Total money a business receives from its trading activities
Revenue stream
Revenue stream
A specific source of income for the business
Single transaction revenue
Single transaction revenue
Income from one-off purchases where customers pay once
Recurring sales
Recurring sales
Regular payments from customers for continued access
Profit formula
Profit formula
Profit = Revenue - Total Costs