Business: Section 3 (Business Costs)

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  • Business Costs
    • Formulas
      • Profit = Revenue- Costs
      • Direct costs + Indirect costs = total costs
      • Variable costs + Fixed costs = total costs
      • Total cost / output =average cost
    • Costs
      • Indirect - General overheads of running business.
      • Direct- expenses that can be attributed to making a particular product.
      • Fixed - Costs that do not vary , have to be paid even if nothing is produced.
      • Variable- Costs that will increase as the firm expands output , mostly direct.
      • Semi Variable - Only vary a little because they have a large fixed element.


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