Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
4.04 O-H/O-C
overhead/operating costs
| Question | Answer |
|---|---|
| break even point | the point at which a business's total sales equal its total expenses; the business has not yet made a profit but has not incurred any losses. |
| capital expenditure | a one time purchase a business makes (land, building, equipment) |
| cost based pricing | a pricing method in which the business adds a predetermined markup to the total costs of making the product |
| depreciation | loss of value |
| economies of scale | cost savings created by an increased levels of production |
| fixed costs | business costs that are not affected by changes in sales volume; also known as fixed costs. |
| fixed expenses | operating costs that do not increase or decrease with changes in production; also known as fixed costs. |
| gross profit | a companies revenue after subtracting the costs of products it has sold |
| mixed costs | expenses that are fixed until the company reaches a certain level of production, then become variable; also called semi-variable costs or semi-fixed costs. |
| operating costs | the ongoing, day to day expenses of running a business that are not directly related to production |
| price-based costing | a pricing method in which the business determines how much customers will pay for a product, then adjust costs accordingly. |
| price markup | the difference between the total costs of a product and its selling price |
| sales commission | an amount a salesperson earns per sale, either a percentage or a flat rate. |
| semi-fixed costs | expenses that are fixed until the company reaches a certain level of production, then become variable; also called mixed costs pr semi-variable costs. |
| 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 |
| total cost | the sum of overhead and direct costs required to make a product |
| variable costs | businesses costs that change according to changes in sales volume; also known as variable expenses |
| variable expenses | operating costs that fluctuate with changes in production; also known as variable costs. |
Created by:
MadisonTroub
Popular Business sets