Topic One: Costs and Making a Profit

Definitions

• Start up costs: Payments made before the start of a project and only occur once
• Running costs: Begin once the business has opened and occur regulary
• Fixed costs: These don't change depending on the number of units made. They will stay the same.
• Variable costs: These change depending on the number of units made (A good way to remember this is remember that VARIable costs VARY)
• Direct Costs: Go straight into making a product e.g. Ingredients for…