Understanding and calculating revenue, costs, and profit

    Cards (39)

    • How is total cost calculated?
      Fixed costs + Variable costs
    • Understanding and maximizing revenue is essential for a business to be profitable and sustainable
    • Profit is the money a business has left after subtracting total costs from total revenue
    • Revenue represents the total income generated from sales.
      True
    • The formula for profit is: Profit = Total Revenue - Total Costs
    • Understanding and maximizing profit is essential for a business to be sustainable
    • Profit is calculated by subtracting total costs from total revenue.
      True
    • Revenue is calculated by multiplying the price of a product or service by the quantity sold.

      True
    • Variable costs increase or decrease based on the quantity produced.

      True
    • Steps to calculate revenue using the formula
      1️⃣ Identify the price of each product or service
      2️⃣ Identify the quantity sold
      3️⃣ Multiply price by quantity
    • What are fixed costs for a business?
      Expenses that do not change
    • What is profit for a business?
      Surplus after costs are deducted
    • What is total revenue defined as?
      Total income from sales
    • What is the definition of revenue for a business?
      Total money from sales
    • Profit is calculated by subtracting total costs from total revenue.

      True
    • What are the two main types of costs for a business?
      Fixed and variable
    • Match the term with its definition:
      Profit ↔️ Money after subtracting costs
      Total Revenue ↔️ Income from sales
    • What is an example of a fixed cost?
      Rent
    • Order the steps to calculate profit:
      1️⃣ Calculate total revenue
      2️⃣ Calculate fixed costs
      3️⃣ Calculate variable costs
      4️⃣ Add fixed and variable costs to find total costs
      5️⃣ Subtract total costs from total revenue
    • Profit is the money left after subtracting total costs from total revenue.

      True
    • What is the formula for calculating revenue?
      Revenue = Price x Quantity
    • What are the two main types of costs in a business?
      Fixed and variable costs
    • What is revenue for a business?
      Total money earned from sales
    • If a business sells each widget for £15 and sells 200 widgets in a month, what is the revenue?
      £3,000
    • What are variable costs for a business?
      Expenses that change with output
    • The formula to calculate profit is Revenue minus Total Costs

      True
    • Calculate revenue using the formula: Revenue = Price x Quantity
    • What two factors are multiplied to calculate revenue?
      Price and quantity
    • What is an example of a variable cost?
      Raw materials
    • What is the formula for calculating profit?
      Total Revenue - Total Costs
    • Profit is essential for reinvestment or distribution to shareholders.

      True
    • What is the formula for calculating profit?
      Profit = Revenue - Costs
    • Match the business term with its definition:
      Profit ↔️ Money remaining after subtracting total costs from total revenue
      Total Revenue ↔️ Total income generated from sales
      Total Costs ↔️ Sum of fixed and variable costs
    • Revenue is the total amount of money a business receives from selling its products or services
    • Fixed costs are costs that do not change with the level of output
    • The formula to calculate revenue is Price multiplied by Quantity.
    • Total costs are calculated by adding fixed costs and variable costs

      True
    • If a business has fixed costs of £50,000 and variable costs of £30,000, the total costs are £80,000.
    • If a business has total revenue of £100,000 and total costs of £80,000, the profit is £20,000.
    See similar decks