Business 4.0 / 5 based on 4 ratings ? BusinessBusinessBTEC NationalAll boards Created by: c0d3y3b0yCreated on: 25-01-18 10:56 start up cost one off costs for items the business needs to start up. 1 of 16 Operating cost on-going costs that the business has on a day to day basic. 2 of 16 fixed costs a cost that does not change with output (use). 3 of 16 Variable cost A cost that does change with output (use). 4 of 16 direct cost A cost that is directly linked to the production of a product or service. 5 of 16 Indirect cost A cost that is not directly linked to the production of a product or service. 6 of 16 Total costs Fixed costs + Variable costs. 7 of 16 Revenue Money that is going into the business. 8 of 16 Calculating Revenue Qty sold x Price per unit. 9 of 16 Expenditure Money the business pays out. 10 of 16 Overheads Everyday running costs of the business. 11 of 16 Profit When revenue is greater than expenditure. 12 of 16 Loss when expenditure is greater than revenue. 13 of 16 Break even The point where you make no profit or no loss.Revenue and costs are equal. 14 of 16 Margin of safety The difference between the break even point and the actual number of units sold. 15 of 16 Budget A plan of inflows and outflows within an organisation. 16 of 16
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