Revenue and Expenses Flashcard

Front

What is the definition of cost?

Back

The dollar amount spent to make a product or purchase

Front

Can you provide an example of an expense in a business?

Back

Salaries

Front

How do you calculate profit in a business?

Back

Subtracting total costs and expenses from revenue

Front

What is the definition of revenue?

Back

Money received from the sale of a product or service

Front

Why is it important for a business to understand its costs?

Back

To make informed decisions and set prices.

Front

What are some common expenses for a small business?

Back

Rent, utilities, salaries, supplies, marketing, insurance

Front

If a business has a revenue of $500 and expenses of $300, what is the profit?

Back

$200

Front

How can a business increase its revenue?

Back

By implementing marketing strategies, expanding product lines, increasing customer base, and improving operational efficiency.

Front

What are some ways a business can reduce its expenses?

Back

Negotiating better deals with suppliers

Front

In plain language, how would you calculate profit?

Back

Revenue minus both costs and other expenses