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Questions and Answers
What is the term for the gain in business; the amount left from the sales after all costs have been deducted?
What is the term for the gain in business; the amount left from the sales after all costs have been deducted?
What is the term for the amount of money that the firm receives for the sale of goods or payment for the services they render?
What is the term for the amount of money that the firm receives for the sale of goods or payment for the services they render?
Which type of cost depends on the volume of production?
Which type of cost depends on the volume of production?
What is the difference between selling price and cost price called?
What is the difference between selling price and cost price called?
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When does a firm use a temporary mark up to take advantage of high demand during peak sales?
When does a firm use a temporary mark up to take advantage of high demand during peak sales?
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Study Notes
Business Gain and Revenue
- "Profit" refers to the gain in business after all costs have been deducted from sales.
- "Revenue" is the total amount of money received from the sale of goods or services rendered by the firm.
Types of Costs
- "Variable costs" are expenses that fluctuate depending on the volume of production, such as raw materials and labor costs.
Selling Price and Cost Price
- The difference between the selling price and the cost price is known as "markup" or "profit margin," indicating the amount added to the cost to determine the selling price.
Temporary Markup Strategy
- A firm implements a "temporary markup" during peak sales periods to capitalize on high demand, allowing for increased prices without losing customers.
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Description
Test your understanding of cost production and revenue concepts including variable cost, fixed cost, revenue, and cost. Evaluate your knowledge of the terminology related to the amount of money received for goods sold and the expenses incurred by a firm.
