R068 Finance Terms and Formulae

Anything that the business has to pay for.

• Costs

• Profit

• Revenue

• Loss

Another word for the goods produced by the company, used when deciding what type of cost something is.

• Input

• Output

_______ costs are not affected by the company's output.

______ costs change depending on the company's output.

Tick all of the fixed costs.

• Salaries

• Materials

• Insurance

• Rent

Tick all of the variable costs.

• Packaging

• Machinery

• Shipping/postage

• Mortgage

The formula to calculate total variable costs is...

• Cost of one unit + quantity produced

• Cost of one unit - quantity produced

• Cost of one unit x quantity produced

• Cost of one unit / quantity produced

Total fixed costs + total variable costs = _______

I am the money that comes into the business, usually from selling products or services.

Revenue = _____ of one unit x quantity sold