COST AND REVENUE

Which of the following is the best definition of REVENUE?

• 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.
• The amount of money a business loses every month.

Which of the following is the best definition of COSTS?

• 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 materials.
• The total amount of money a business spends.

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

• FIXED cost.
• VARIABLE cost.

Fixed Cost + Variable Cost =

• Breakeven point

• Total costs

• Fixed costs

• Variable costs

Costs that change based on the amount of goods and services produced.

• Total costs

• Fixed costs

• Variable costs

• Costs

Tags

CCSS.HSF-LE.A.1B

Rent, administrative costs, advertising, employee salary are examples of ...

• Variable costs

• Fixed costs

• Costs

• Prices

Marginal cost is

• Total cost

• minimum cost

• Change in TC

Average cost is

• Total cost

• Cost per unit

• always zero

Average revenue is equal to

• Price

• Total revenue

• Total cost

The shape of Average cost is

• upward sloping

• downward sloping

• U shaped