1.4 Revenue, Costs and Profit

What is the definition of Revenue?

• Income from the sales of goods and services
• Income from the cost of goods and services 
• The money made on products
• Cash coming into the business from suppliers and customers

Business expenses i.e. what the business spends in its running are referred to as...

• Expenses
• Outgoings
• Costs
• Revenue

What is the formula for Revenue?

• No. Sold  x  Selling Price
• No. Sold x Costs
• Selling Price x Costs
• Selling Price x Total sales

What is the formula for Profit?

• Revenue - Sales
• Revenue - Costs
• Revenue - Fixed Costs
• Revenue - Gross Profit

What is the definition of a fixed cost?

• A cost that varies with output
• A cost that does not vary with output
• Costs that do not change
• Costs that change only when agreed

What is the definition of a variable cost?

• Costs that vary with output
• Costs that do not vary with output
• Costs that are always changing
• Costs that cannot change

Which of the following is the best definition of PROFIT?

• The total amount of income a business makes from selling products or services
• The amount of money a business has left over after paying for their costs.
• The total amount of money a business spends.

If you own a home, you must pay for electricity you use.  The amount you pay changes every month depending on how much you use. This is an example of a...

• FIXED cost.
• VARIABLE cost.

Your business rents a building on Main Street in Dewsbury.  Every month you pay exactly £750 to rent the building.  This is an example of a...

• FIXED cost.
• VARIABLE cost.

You own a restaurant and every month you must pay your water bill. However, you never know how much that bill will be because the amount changes based upon how much water your business uses.  This is a...

• FIXED cost.
• VARIABLE cost.