2.2.2 Sales, revenues and costs

    Cards (6)

    • Average cost - the cost of producing one unit.
    • Fixed costs - costs that do not change based on output.
    • Revenue - the amount of income for a business based on sales.
      Revenue = price x quantity sold
    • Total costs - all costs of a business.
      Total costs = total variable costs + total fixed costs
    • Variable costs - costs that vary depending on output.
    • Sales volume - the amount of units sold.
      Sales volume = revenue / price
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