The money (income) received by a business from the sale of goods and/or services.
true or false? Money that may be drawn from a bank account up to an agreed limit is known as an overdraft.
true
capital expenditure
Refers to business spending on fixed assets or capital equipment of a business.
price
Also known as average revenue, this is the amount of money a product is sold for.
total revenue
This is the sum of income received by a business from its trading activities. It is calculated using the formula: TR = P × Q.
true or false? Share capital is an example of an internal source of finance.
false
direct costs
Costs that are clearly associated with the output or sale of a certain good, service or business operation, e.g., raw materials.
true or false? A disadvantage of leasing is that at the end of the lease contract the hirer has to return the goods.
true
true or false? Packaging costs can be classified as a fixed cost of production.
false
finance
Refers to the various available money that an organization has to fund its business activities.
A firm has fixed costs of $9,000, output of 1,000 units, and variable cost per unit of $5. The total costs of output is then equal to $15,000.
calculate the answer
indirect costs or overhead costs
Also known as overhead costs, these costs are not easily identifiable with the sale or output of a specific good, service or business operation.
true or false? The purchase of fabrics would be classified as a fixed cost of production for a textiles manufacturer.
false
revenue expenditure
Refers to business spending on its everyday and regular operations.
Total costs
This refers to the aggregate amount of money spent on the output of a business. The formula is: TC = TFC + TVC where: TC = Total costs TFC = Total fixed cost,
true or false? Business angels are investors who provide grant to businesses approved by the government.
False.
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