Costs 0.0 / 5 ? Applied BusinessCosts ASOCR Created by: Georgia LouCreated on: 22-04-14 14:37 Costs You need to clarify the cost of all products to be able to analyse the proft or losses made 1 of 10 Fixed Assets / Capital Expendidture The things the business owns || i.e. A van, the premesis || They are paid for by the owners/ shareholders || 2 of 10 Fixed Costs Costs thta do not very or change || i.e. rent, heating 3 of 10 Variable Costs Costs that could change - depending on the output || i.e. raw materials, power for machines 4 of 10 Total Costs Total Costs = Fixed + Variable 5 of 10 Price Amount paid by the customer 6 of 10 Total Revenue Income that is recieved from an organisations activity 7 of 10 Total Revenue Formula Total Revenue = Price X Quantity 8 of 10 Profit Diference between the firms income and its total costs 9 of 10 Profit Formula Profit = Total Revenue - Total Costs 10 of 10
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