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Theme 2
2.2 Financial planning
2.2.2 Sales, revenues and costs
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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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