Business Costs, Revenue and Profit

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  • Created by: mrdjames
  • Created on: 13-06-18 11:15
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  • Costs, Revenue and Profit
    • Startup Costs
      • A cost that a business pays before it starts running.
        • *Initial Rent
        • Equipment
        • Products to sell
        • Initial Insurance Cost
    • Running Costs
      • Cost that a business pays out while the business is running
        • Mortgage
        • Stock (Raw Materials
        • Rent
        • Wages/Salary
        • Utilities
    • Fixed Costs
      • A cost that have to be paid no matter what. Not dependent on products made.
        • Rent
        • Staff Salary
        • Utilities
        • Insurance
        • Mortgage
    • Variable Cost
      • Costs that change depending on the number of products made/sold.
        • Electricity for the machines making the product.
        • Stock
        • Packaging
        • Cost of making the products
        • Transport
        • Staff Wages
    • Revenue & profit
      • Revenue= money coming into the business
        • Revenue= Number sold x selling price
        • Profit= Revenue - Costs
      • Profit= Revenue higher than costs
        • Revenue= Number sold x selling price
        • Profit= Revenue - Costs

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