Financial terms and simple calculations

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  • Created by: vampette
  • Created on: 11-04-14 09:11
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  • 3.2 Financial terms and simple calculations
    • Financial terms
      • Price: The amount of money paid by a customer for a good or service.
      • Sales: the number of items sold or services provided.
      • Revenue: the value of money coming in from sales (also referred to as sales revenue or sales turnover).
      • Costs: the expenses incurred by a business when providing goods or services.
      • Profit: The surplus of revenue over costs.
    • Financial calculations
      • Revenue
        • Number of products sold x selling price (PxQ)
      • Costs
        • Add up all the costs incurred in making the sales.
      • Profit or loss
        • The difference between revenue and costs; Revenue - costs = profit (or loss)

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