Revision for Test 1 0.0 / 5 ? Applied SciencedsfsdsdfsdfBTEC NationalCCEA Created by: kasparssilnieksCreated on: 18-11-14 10:09 Fixed costs The costs that remain the same even when sales fall or increase. 1 of 10 Variable costs Costs that will raise when sales increase and fall when there is a fall in the demand for the product. 2 of 10 Total costs= Fixed costs + Variable costs 3 of 10 Direct costs Cost that can be linked to a product such as the raw materials and labor used to make it. 4 of 10 Indirect costs Often called overheads and are the costs that are required for a business to operate but are not directly related to a specific product. 5 of 10 Profit The money left after your costs have been deducated. 6 of 10 Gross profit= Sales revenue - cost of sales ( how much it costs you to either make the finished product or buy it in) 7 of 10 Break even= Fixed costs / (Selling price - Variable costs) 8 of 10 Costs of sales is how much it costs you to make the product. 9 of 10 shareholder's funds where company's money comes from. 10 of 10
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