Costs and Revenue

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  • Costs and Revenue
    • Fixed Costs
      • Costs that aren't directly linked to the output of the company.
      • They are paid every month even if the company doesn't produce anything
      • Fixed costs include rent, insurance, salaries and utilities
    • Variable Costs
      • Costs that are directly linked to the output of the compay
      • Variable costs change with the output of the company, the more they produce the higher the variable cost
      • Variable costs include wages, stock and raw materials
    • Semi-Variable Costs
      • Costs that are linked to output but not directly
      • Semi-Variable costs include fuel because more fuel is used to transport more products but isn't directly related to output.
    • Revenue
      • Sales Revenue = Selling Price X Units Sold
      • Revenue is the amount of money made from selling the product or service


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