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Business Studys

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on 26 September 2013

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Transcript of Business Studys

Business Studies
Fixed and Variable Costs
Fixed cots is when you definitely have to pay even if you don't sell anything Rent is a fixed cost because you have to pay no matter what .
Variable cost is when you don't have to definitely pay you can pay if you want to a variable cost is packaging you decide whether you want it .
Start up and Running Costs
Start up costs are the costs as you are starting up the business like opening signs or training of staff .
Running costs are the costs through out the business
such as rent or telephone bill .
Total Costs

Total costs are fixed costs plus variable costs and the answer is your total cost
Conclusion
Revenue
Revenue is all the money that comes into the business it is'nt the profit .
The Formula of revenue is Number of sales * cost per unit .
All businesses have a revenue
Example
A business sells 1000 small boxes of chocolate at £4 each the revenue will be £4000
Full transcript