Profit is the result of sales minus all variable costs. True False Cost of sales are variable; cost of labour also contains variable elements and never contains fixed elements. True False The following abbreviations are correct: S = Sales VC = Variable costs FC = Fixed costs P = Profit True False The following equation correctly defines the relationship between sales, cost of sales, cost of labour, cost of overhead and profit: Sales = Cost of sales + Cost of labour - Cost of overhead + Profit True False