Revision for Test 1

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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

Other cards in this set

Card 2

Front

Variable costs

Back

Costs that will raise when sales increase and fall when there is a fall in the demand for the product.

Card 3

Front

Total costs=

Back

Preview of the front of card 3

Card 4

Front

Direct costs

Back

Preview of the front of card 4

Card 5

Front

Indirect costs

Back

Preview of the front of card 5
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