revenue,costs and profit
- Created by: olivia1231
- Created on: 05-04-20 15:48
View mindmap
- business: costs, Revenue and profit section
- costs
- costs is the expenses paid out to run a then business
- Total costs= variable costs + fixed costs
- Fixed costs don't vary and and they are over a short period of time eg: salaries or rent.
- Variable costs are costs that will increase as the firm expands output
- costs is the expenses paid out to run a then business
- revenue
- revenue is the income returned by a business
- revenue= sales x price
- businesses earn most of their income from selling their products to customers.
- profit
- Businesses make a profit if the earn more than they spend
- (2 ways of working out profit)
- Example 1) Profit=(20,000 x £2) Example 2) Profit= 40,000-30,000=10000
- profit= revenue - costs
- link:
- BBC bitesize
- costs
Comments
No comments have yet been made