- Business Costs
- Profit = Revenue- Costs
- Direct costs + Indirect costs = total costs
- Variable costs + Fixed costs = total costs
- Total cost / output =average cost
- 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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