Theme 1 - Revenue and costs

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  • Created by: becky.65
  • Created on: 08-05-17 19:21
How do you calculate sales revenue?
Price x Quantity Sold or Price x Sales Volume
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How do you calculate average cost?
Total Cost / Quantity Sold
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What are fixed costs?
Costs that have to be covered before anything is actually produced. They include all capital spending, insurance and premises, interest payments and employees who do not create the end product
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What are variable costs?
Cost of raw materials and other bought-in inputs, labour used to create the product and the cost of energy
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How do you calculate total cost?
Fixed Costs + Variable Costs
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How do you calculate profit?
Total Revenue - Total Costs
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How do you calculate a percentage change?
(Q2-Q1 / Q1) x 100
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Other cards in this set

Card 2

Front

How do you calculate average cost?

Back

Total Cost / Quantity Sold

Card 3

Front

What are fixed costs?

Back

Preview of the front of card 3

Card 4

Front

What are variable costs?

Back

Preview of the front of card 4

Card 5

Front

How do you calculate total cost?

Back

Preview of the front of card 5
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