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E ll 2.04

PI-004 Glossary

QuestionAnswer
Break-even point The level of sales at which revenues equal total costs
Fixed cost Business costs that are not affected by changes in sales volume
Profit Monetary reward a business owner receives for taking the risk involved in investing in a business
Sales revenues Money that comes in to a business from the sale of goods and services; also called income from sales
Selling price The amount a seller charges the purchaser for a good or service
Semi-variable costs Business costs that vary to some extent in response to sales
Total costs All of a business's costs , both fixed and variable
Variable -cost margin The amount of variable costs that apply to one unit; also called fixed-cost contribution
Variable costs Business costs that change according to changes in sales volume.
Created by: joecorbett
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