3.3 Glossary of key terms
Unit 3.3 Glossary of key terms - Costs and revenues Key term Definition Average costs This is the cost per unit of output. It is calculated by the formula: AC = TC ÷ Q where: Average revenue This is the amount a business receives from its customers per unit of a good or service sold. Mathematically, AR = TR ÷ Q = P where: Costs The charges that an organization incurs from its operations, e.g., rent, wages, salaries,...