costs, revenues and profits 3.0 / 5 based on 1 rating ? Business StudiesASAQA Created by: amyCreated on: 19-05-13 12:36 Key Terms PRICE- the amount paid to purchase one unit of a product REVENUE- the money generated from the sale of goods PROFIT- the amount of money that is left from revenue one total costs have been deducted FIXED COSTS- those costs that do not change in direct proportion to the level of output. e.g. rent, salaries, marketing. VARIABLE COSTS- those costs that vary in direct proportion to the level of output e.g. wages, stock, power TOTAL COSTS= fixed costs + variable costs 1 of 2 Price it is very difficult for new businesses to know what price to charge price too high = people will not buy it price too low = people might think that the product is inferior or they might swamp you with demand which you are unable to meet 2 of 2
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