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E11 2.01 Glossary
Term | Definition |
---|---|
Administrative Costs | Expenses an organization incurs that are not directly tied to a specific function such as manufacturing, production or sales. |
Benefits | Advantages or payments employees receive in addition to their wages (e.g., sick time, holiday pay, health insurance). |
Cost of Production | The total amount of money spent on costs of materials, labor, taxes, etc., to manufacture economic goods and services. |
Cost of Sales | The amount of money a business has paid for the product (good or service) it has sold. |
Costs | The expenses involved with manufacturing, promoting, and distributing a product. |
Professional Fees | Prices charge by individuals specially trained in specific fields of arts and sciences, such as doctors, architects, lawyers and accountants. |
Sales and Marketing Costs | All reasonable costs and expenses (including labor) that are attributable to the distribution, sale, promotion and marketing of a Product (including all pre-launch activities), calculated on a fully burdened bais, including Allocable Overhead attributable |
Start-up Costs | All of the expenses involved in setting up a new business or introducing a new product to the market. |
Technology Costs | Expenses associated with acquisition or development, implementation, deployment, and maintenance of technology assets, including depreciation of R&D equipment and amortization of know how. |
Wages | Money payments for labor on an hourly, daily, or weekly basis. |
Operating Expenses | The ongoing, day-today expenses of running a business that are not directly related to production. |
Fixed Costs | Operating costs that do not increase or decrease with changes in production. |
Variable Costs | Operating costs that fluctuate with changes in production. |
Semi-Variable Costs | Expenses that are fixed until the company reaches a certain level of production, then become variable; also called mixed costs or semi-fixed costs. |
Gross Profit | A company's revenue after subtracting the costs of products it has sold. |
Break-Even Point | The point at which a business's total sales equal total expenses; the business has not yet made a profit but has not incurred any losses. |