Costs & Revenues in Business Management

These flashcards cover key vocabulary related to costs and revenues in business management, focusing on types of costs, revenue generation, and key terms relevant to the subject.

Fixed Costs (FC)

Costs that do not change with the level of output.

Variable Costs (VC)

costs that do change with the number of goods or services produced. 

Total Costs (TC)

The sum of fixed costs and variable costs.

Total cost formula

Total costs= fixed costs + variable costs

Direct Costs

Costs that are directly associated with the production of a specific product.

Indirect Costs

Costs that cannot be easily allocated to a specific product; also known as overheads.

Sales Revenue

The total value of units sold by a business within a specific time frame.

Revenue Streams

Different sources of revenue generated by a business, beyond just sales.

Sales Revenue Formula

Sales revenue = quantity sold x selling price.

Economies of Scale

Cost advantages that a business obtains due to the scale of operation.

Merchandise Revenue

Revenue generated from selling additional products alongside core sales.

Sponsorship Revenue

Income received from businesses in exchange for promoting their brand.

Advertising Revenue

Income generated from advertisers in exchange for promoting their products or services.