Term
| What is the simple formula for profit? |
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Definition
| Total Revenue - Total Cost |
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Term
| 2 reasons why profit is important for a bbusiness. |
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Definition
1. Personal Needs
2. Reward for Risk Taking |
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Term
| What is the cost of sales? |
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Definition
| Direct cost is known as the cost of sales. (Cost of producing the good, labor, and raw materials) |
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Term
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Definition
| Sales revenue - cost of goods sold. |
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Term
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Definition
| Money that is left over, after all deductions, for the business to use. |
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Term
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Definition
| Sales revenue - total costs |
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Term
| What is Distributed Profit? |
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Definition
| Part of the profit paid out for tax and in dividends to shareholders. |
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Term
| Difference between a balance sheet and a profit and loss account. |
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Definition
| Balance sheet shows the value of the business. Profit and loss account shows the activity of the business over a year. |
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Term
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Definition
1. You can compare assets with the previous year and competitors
2. Other companies can compare with your business. |
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