MKT 100 Study Guide - Quiz Guide: Out-Of-Order Execution, Contribution Margin, 1Time Airline

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Yanina Chevtchouk

Document Summary

The amount of money that a company actually receives during a specific period, i(cid:374)(cid:272)ludi(cid:374)g dis(cid:272)ou(cid:374)ts a(cid:374)d dedu(cid:272)tio(cid:374)s for retur(cid:374)ed (cid:373)er(cid:272)ha(cid:374)dise. It is the (cid:862)top li(cid:374)e(cid:863) or (cid:862)gross i(cid:374)(cid:272)o(cid:373)e(cid:863) figure fro(cid:373) (cid:449)hi(cid:272)h (cid:272)osts are su(cid:271)tra(cid:272)ted to determine net income. Revenue is calculated by multiplying the price at which goods or services are sold by the number of units or amount sold. Examples of personal revenue: salary/wages, allowance (partner, parent), government. The economic costs that a business incurs through its operations to earn revenue. In order to maximize profits, businesses must attempt to reduce expenses without also cutting into revenues. Because expenses are such an important indi(cid:272)ator of a (cid:271)usiness"s operations, there are specific accounting rules on expense recognition. Examples of expenses include payments to suppliers, employee wages, factory leases and depreciation. Cost that remains constant, regardless of a(cid:374)y (cid:272)ha(cid:374)ge i(cid:374) a (cid:272)o(cid:373)pa(cid:374)y"s a(cid:272)ti(cid:448)ity (i(cid:374)(cid:272)ludi(cid:374)g sales/revenues) Examples of fixed costs: marketing overhead, advertising campaign expenses, salaries, design packaging costs, patent costs, etc.