revenues , cost and profit

• Revenue/turnover: The Money a business makes from sales or value of sales.
• Total revenue: Total amount of money the business receives from sales.
• Total revenue formula: Quantity sold X Selling price
• Fixed costs: Costs that don't change with how much is produced. (e.g. Rent , mortgage)
• variable costs: costs that change depending on how much is produced. (e.g. Raw materials , electricity)
• Total cost: adding fixed costs and variable costs to find out the cost of producing the product.
• semi-variable costs: A cost that is made up of both fixed and variable components.(e.g. rent)
• Direct costs: Costs that are directly related to the production of a certain product/service. (e.g. Direct Labour)
• Indirect/overhead costs: Costs that are not directly related to the production of a certain product/service.
• Profit = Total revenue - Total cost
• If total revenue is more than total cost than a business is making a loss
• If the total cost is more than the total revenue than the business is making a profit
• Total cost formula: Fixed costs + total variable costs