Business chap 29 definition 0.0 / 5 ? BusinessCostsASCIE Created by: ngaelsaCreated on: 30-03-17 08:02 Direct costs these costs can be clearly identified with each unit of production and can be allocated to a cost centre. 1 of 8 Indirect costs costs that cannot be identified with a unit of production or allocated accurately to a cost centre. 2 of 8 Fixed cost costs that do not vary with output in the short run. 3 of 8 Variable cost Cost that vary with output 4 of 8 Marginal cost the extra cost of purchasing one more unit of output 5 of 8 Break-even point (BEP) of production the level of output at which total costs equal total revenue, neither a profit nor a loss is made. 6 of 8 Margin of safety (MoS) the amount by which the sales level exceeds the break-even level of output. 7 of 8 Revenue expenditure Spending on all costs and assets other than fixed assets and includes wages and salaries and materials bought for stock 8 of 8
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