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Profit = Revenue - Cost
Variable costs - Costs that vary directly with production
Fixed costs - Costs that do not vary directly with production
Semi-variable costs - Costs that have both variable and fixed elements
Direct costs - Costs that are directly linked to the sale of the goods or the provision of the service
Indirect costs - Costs that cannot be directly linked to the sale of the goods or the provision of the service
Total revenue = Selling price Ă— Output