this is the total revenue a business recieves in a given financial period. For example from selling products
1 of 5
Cost of sales (cost og goods sold )
this is how much the business it costs to make or produce a product. If something was sold for 20p each of the goods would cost £10.00 to produce so you would need to take this away from the total amount
2 of 5
Gross profit
gross profit = turnover - cost of sales
3 of 5
expenses ( overheads )
these are the costs that a business must pay in order for it to run , include all costs - not associated with making the product. for example wages for staff advertising, expenses are debucted from gross profit to give the net profit
4 of 5
net profit
net profit = gross profit - expenses ( the money left over when all the expenses are deducted from gross profit
5 of 5
Other cards in this set
Card 2
Front
this is how much the business it costs to make or produce a product. If something was sold for 20p each of the goods would cost £10.00 to produce so you would need to take this away from the total amount
Back
Cost of sales (cost og goods sold )
Card 3
Front
gross profit = turnover - cost of sales
Back
Card 4
Front
these are the costs that a business must pay in order for it to run , include all costs - not associated with making the product. for example wages for staff advertising, expenses are debucted from gross profit to give the net profit
Back
Card 5
Front
net profit = gross profit - expenses ( the money left over when all the expenses are deducted from gross profit
Comments
No comments have yet been made