Business Fundamentals 1

The money coming into the company from sales.

• Revenue

• COGS

• Gross profit

Profit from the business operations.

• Retained profit

• Net profit after tax

• Operating profit

This is money paid to the shareholders.

• Stocks

• Dividends

• Bonds

This is what remains to invest in the business in the future.

• Retained profit

• Net profit after tax

• Operating profit

These costs are .......................: the more you produce, the higher the cost. They include raw materials, commission paid to sales people, transport

costs, and fees paid to external staff working on a project-by-project basis.

• not volume-related

• volume-related

• quality-related

This is the cost of selling and marketing the products, and of generally running the company. These costs are.........................: you have to pay them

regardless of how much you produce.

• not volume-related

• volume-related

• quality-related

They include the salaries of permanent employees,

advertising, rent, insurance premiums, etc.

• COGS

• Revenue

• Overheads

They include raw materials, commission paid to sales people, transport costs, and fees paid to external staff working on a project-by-project basis.

• COGS

• Overheads

• Revenue

Interest, tax, depreciation are all subtracted from the .................. .

• retained profit

• operating profit

• gross profit

A cost such as rent that a company has to pay that does not depend on how much it produces.

• fixed cost

• variable cost

• Margin