A02 Costs and Revenue

8. A long‑term loan used to buy property. The property itself acts as security for the loan.
9. Money spent on long‑term assets such as buildings, equipment, or vehicles that will be used for several years.
11. All costs a business incurs.
12. Fixed Costs + Variable Costs.
15. Price × Quantity Sold.
16. The amount of money left after all costs have been deducted from revenue.
17. The extra money paid to a lender for borrowing money—calculated as a percentage of the amount borrowed.
18. Money spent by an individual or business on goods, services, or costs.

1. Costs that change directly with the level of output or sales (e.g., raw materials).
2. When expenditure is greater than income; the opposite of a surplus.
3. A pricing strategy where prices change in real time depending on demand, time, or customer behaviour (e.g., airline ticket pricing).
4. A measure showing the percentage of revenue that becomes profit.
5. Costs that do not change with the level of output or sales (e.g., rent, salaries).
6. Costs that have both fixed and variable elements (e.g., a phone bill with a fixed line rental plus charges for extra usage).
7. Money received by an individual or business (e.g., wages, sales, grants).
10. Total Revenue – Total Costs.
13. When income exceeds expenditure; similar to profit, especially in non‑profit or government settings.
14. The total amount of money a business earns from sales.