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Cost and revenues - Coggle Diagram
Cost and revenues
Key terminology
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Revenue
Revenue is the money that a business earns from the sale of goods and services. It is calculated by multiplying the unit price of each product by the quantity sold.
Cost
Cost refers to the sum of money incurred by a business in the production process, such as the costs of raw materials, wages and salaries, insurance, advertising and rent.
Fixed cost
Fixed costs are the costs of production that a business has
to pay regardless of how much it produces or sells.
Direct cost
A direct cost is specifically related to an individual project or § the output of a particular product; without which the costs would not be incurred.
Variable cost
Variable costs are the costs of production that change in
proportion with the level of output or sales.
indirect cost
Indirect costs, also known as overheads, are those that cannot
be clearly traced to the production or sale of any single product.
Revenue streams
Money can come into a business from other means, collectively known as revenue streams,
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