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Stack #4441980
| Term | Definition |
|---|---|
| break even point | the point at which a business 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 cost of making the product |
| depreciation | loss of value |
| economies of scale | cost savings created by increased levels of production |
| fixed costs | business costs that are not affected by changes in sales volume also known as fixed expenses |
| fixed expensed | operating costs that do not increase or decrease with changes in production also known as fixed costs |
| gross profit | a company revenue after subtracting the costs of the 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 cost | 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 willy pay for a product then adjusts cost accordingly |
| price markup | the difference between the total cost 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 becomes variable also called mixed costs or semi fixed 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 the overhead and direct costs required to make a product |
| variable costs | business costs that change according to changes in sales volume also known as variable expenses |
| variable expenses | operating costs the fluctuate with changes in production also known as variable costs |
Created by:
valorie.b923
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