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GCSE Business · key term
An expense incurred by a business in producing and selling goods or services.
Used by AQA and OCR
Paper 1, Paper 2
An amount a business spends to produce goods, provide services or operate.
Revise: Costs, Revenue and Profit CalculationsRevenue is the income a business earns from selling goods or services, before any costs are deducted. It is also called sales revenue or turnover. A busy business may have high revenue, but this does not tell us how much money remains after paying its costs.
Check whether a variable cost is given per unit or as a total. Multiply a per-unit cost by output before adding fixed costs.
Use figures for the same period: do not subtract monthly costs from annual revenue.
If revenue minus total costs is negative, identify the result as a loss and state its size.
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Paper 2
An expense incurred by a business in producing goods, providing services or operating.
Revise: Purpose of the Finance FunctionRecords of spending show costs, such as wages, materials and rent. Comparing revenue with total costs shows whether the business has made a profit or a loss.
An expense incurred in producing and selling goods or services and running a business.
Money a business spends to operate and provide goods or services.