WorksheetsLO2 Key words+ formulae
Total questions: 24
Worksheet time: 12mins
A fixed cost is a cost that does not vary with output.
True
False
The money received from customers when they pay for goods is called sales revenue.
False
True
An example of a variable cost is rent.
True
False
Sales revenue is a business cost.
True
False
An example of a variable cost in Brian’s business is packaging.
True
False
If you charge a low price, a customer will always buy your product.
True.
False
This is the term given to how many products/services a business produces.
Output
Cost
Fixed Cost
Variable cost
The things a business has to pay for in order to start-up and operate on a daily basis.
Output
Costs
Profit
Revenue
Costs that do not change depending on output
Variable costs
Fixed costs
Total costs
Output
These are the costs that change based on output.
Fixed costs
Variable costs
Output
Rent is...
variable cost
fixed cost
total cost
Advertising is...
output
fixed cost
variable cost
Raw materials are...
fixed cost
variable cost
Insurance is...
fixed cost
variable cost
Salaries are...
fixed cost
variable cost
Wages are...
fixed cost
variable cost
Packaging is...
fixed cost
variable cost
Utilities are...
fixed cost
variable cost
All the fixed costs added together with all the variable costs.
output
fixed costs
variable costs
total costs
The formula for total costs is:
fixed costs+variable costs= total costs
output+fixed costs=total costs
output+variable costs=total costs
Revenue is...
Sales revenue – total costs
Selling price x number of units sold
Fixed costs + variable costs
cost that is independent of output
Profit/Loss...
Sales revenue – total costs
Selling price x number of units sold
Fixed costs+total costs
Word formula for: Margin of safety
Production- break even
Selling price x number of units sold
Sales revenue – total costs
Fixed costs + variable costs
Break even point formula:
Selling price x number of units sold
Sales revenue – total costs
Fixed Costs ÷ (Sales price per unit – Variable costs per unit)
Fixed costs + variable costs
