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Enterprise exam - Coggle Diagram
Enterprise exam
Vocabulary
BEP
:break even point
Profit:
positive result after you deduct expenses from income
Income statement:
Financial record that contains payment of expenses and transactions
Cashflow:
money in and out
Gross profit:
Revenue - cost of sales
expenditure:
money going out
Cost
: amount of money you expend in production
Price:
amount of money given for a product
Revenue:
income from sales= pricex units sold
Net profit:
gross profit- expenses
Interest:
cost of loans
Income:
money going in
Fixed cost:
dont change
Variable:
depends on the units produced
Steps to make an income statement
Step 3: Substract
cost of production
from
revenue
to obtain
gross profit
Step 4: substract
fixed cost
or expenses from
gross profit
to obtain
net profit
Step 2: calculate the
revenue
Step 5: find if there is a surplus or a deficit
Step 1: calculate the
cost of production