Financial terms

financial terms

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financial terms

  • Revenue is the money received from sales, [price x units sold].
  • Fixed costs do nto chang according to how much a bisinass sells eg/ rents.
  • variable costs do vary directly with thw amount sold/ produced eg/ stocks [unit varible costs x units sold].
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terms

  • Total costs = [Fixed costs + Variable costs.]
  • Break-even is where the total costs are the same as the total revenue. You are not making a profit or a loss.
  • Profit  = is when revenue is greater than the total costs.[ Revenue - costs]
  • Loss total cost is greater than the revenue.
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