Costs, revenue and profit

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  • Created by: megangore
  • Created on: 03-04-16 15:09

Profit formula

Profit= Revenue- Total cost

  • A cost is expenditure a firm incurs while trading, and if costs get too large, the business risks making a loss

Fixed and variable costs

  • The costs that a business incurs are normally divided into two components.
  • Fixed costs do not change as output changes. They remain the same at all levels

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