Business Functions --> accounting/finance 2
- Created by: Ali Bland
- Created on: 05-03-15 19:04
View mindmap
- Business Functions --> Accounting/ Finance 2
- Different types of costs
- Unit costs
- Cost of producing one unit
- Fixed costs or indirect costs
- Costs that are not directly related to the level of output
- Variable costs or direct costs
- Costs that are directly related to the level of output
- Unit costs
- Marginal cost
- The increase in variable cost
- The cost of producing each extra unit
- Contribution costing
- The amount each unit of productions contributing to the overheads of the business
- Contribution per unit = selling price - variable costs per unit
- Total contribution = contribution per unit x number sold
- Types of goods
- Normal
- As income rises the quantity demanded rises
- Inferior
- As income rises the quantity demanded falls
- Normal
- Income elasticity of demand (YED)
- YED means how demand responds to change in income
- Margin of safety
- The difference between the actual level of output and the break even point
- Different types of costs
Comments
No comments have yet been made