Costs and Revenue
- Created by: harrykelly09
- Created on: 08-05-14 14:12
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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
- Fixed Costs
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