The money a business has to pay for its products and services.

The money a customer gains from selling its products and services.

The money a business gains from selling its products and services.

The money a customer has to pay for its products and services.

Cost price x quantity sold

Selling price x cost price

Selling price x quantity made

Selling price x quantity sold

A cost that directly relates to the making of a product or purchase of stock.

A cost that directly relates to the operation of the business.

A cost that directly relates to the salaries of the managers.

A cost that directly relates the start-up of a business

Rent

Raw materials

Stock

Advertising

Components

Costs that relate to the making of a product or service.

Costs that relate to the buying of stock

Costs that relate to the running of the business.

Costs that relate to the wages of production workers.

Advertising

Stock

Ingredients

Insurance

Rent and rates

Cost price x quantity sold

Selling price x quantity made

Cost price x quantity made

Selling price x quantity sold

All the costs involved in the making of the products and services.

All the costs involved in the running of the business.

All the costs involved in the paying of the workforce,

All the costs involved in the making of the products and running of the business.

Fixed costs - Variable costs

Fixed costs + Variable costs

Variable costs - Fixed costs

Fixed costs x Variable costs

When total revenue is the same as total costs.

When total revenue is less than total costs.

When total revenue is greater than total costs.

When total revenue and total costs are multiplied together.

When total revenue is the same as total costs.

When total revenue is less than total costs.

When total revenue is greater than total costs.

When total revenue and total costs are multiplied together.

Total revenue + Total costs

Total revenue x Total costs

Total costs - Total revenue

Total revenue - Total costs

The profit made when the cost of sales is taken away from sales revenue.

The profit made when the cost of sales is added to sales revenue.

The profit made when sales revenue is taken away from the cost of sales.

The profit made when sales revenue is added to the cost of sales.

The costs involved in running the business.

The costs involved in buying the products or services by customers.

The costs involved in the making of the products or services.

The costs involved in the paying of workforce.

The profit made when costs of sales are subtracted from gross profit.

The profit made when operating expenses are subtracted from gross profit. Often called the “bottom line”.

The profit made when operating expenses are added to the gross profit. Often called the “bottom line”.

The profit made when costs of sales are added to the gross profit.

The costs involved in running the business, such as ingredients, raw materials and components.

The costs of operating the business, including buying of stock, raw materials and components.

The costs of operating the business, including wages and salaries, rent or mortgage payments, insurance, heating and lighting and advertising.

The costs involved in creating the products and providing of services.

Cost of sales - sales revenue

Sales revenue - cost of sales

Sales revenue + cost of sales

Cost of sales + sales revenue

Gross profit + Other operating expenses and interests

Gross profit - Cost of sales

Gross profit - Other operating expenses and interests

Gross profit + Cost of sales

Operating costs

Total costs

Fixed costs

Variable costs

Fixed costs

Operating costs

Variable costs

Total costs

Sales revenue/Gross profit x 100

Gross profit/Sales revenue x 100

Gross profit x Sales revenue x 100

Gross profit - Sales revenue x 100

Net profit/Sales revenue x 100

Sales revenue/Net profit x 100

Net profit x Sales revenue x 100

Net profit - Sales revenue x 100

It shows how much of the money gained from sales (sales revenue) is converted into net profit.

It shows how much of the money paid for cost of sales is converted into gross profit.

It shows how much of the money gained from sales (sales revenue) is converted into gross profit.

It shows how much of the money paid for cost of sales is converted into net profit.

It shows how much of the money gained from sales (sales revenue) is converted into gross profit.

It shows how much of the money paid for the cost of sales is converted into net profit.

It shows how much of the money paid for the cost of sales is converted into gross profit.

It shows how much of the money gained from sales (sales revenue) is converted into net profit.

It is used to judge whether the business should try to grow

It is used to judge whether investment in the business by its owners is worthwhile.

It is used to judge whether it is worthwhile to raise finance by selling more shares.

It is used to judge whether a new partner should be taken on.

It is an actual financial account, which is based on the actual profit from an investment compared to the cost of the investment.

It is a forecast, which is based on the expected profit the investment will make compared to the cost of the investment.

It is a forecast, which determines how much cash is available ina business to pay short term bills.

It is an actual statement of the amount of profit made in a year.

Cost of investment/Average annual profit x 100

Net profit/Cost of investment x 100

Gross profit/Cost of investment x 100

Average annual profit/Cost of investment x 100

Shareholders may be unhappy as they are not receiveing the expected returns for their investment and may decide to sell their shares.

Employees may not be rewarded for high productivity and leave to rival companies.

It may be more difficult to compete with other companies.

A business may struggle to develop new products to gain a competitive advantage in a market.

Inc.rease costs by purchasing better quality materials

Renegotiate cost prices with suppliers.

Increase selling prices (as long as sales do not fall too sharply).

Move to more expensive premises to raise public awareness.

Decrease selling prices (as long as volume of sales remains the same).