the point at which a business's total sales equal its total expenses; the business has not has not yet made a profit but has not incurred any losses

A one-time purchase a business makes ( e.g. , land, building, equipment)

Cost savings created by increased levels of production

Business costs that are not affect by changes in sales volume; also known as fixed expenses

Operating costs that do not increase or decrease with changes in production ; also known as fixed costs

A company's revenue after subtracting the costs of the products it has sold

Expenses that are fixed until the company reaches a certain level of production, then become variable; also called semi-variable costs or semi- fixed costs

The ongoing , day -to-day expenses of running a business that are not not directly related to production

A pricing in method in which the business determines how much customers will pay for a product , then adjusts costs accordingly

the different between the total costs of a product and its selling price

An amount of a salesperson earns per sale, either a percentage or flat rate

Expenses that are fixed until the company reaches a certain level of production, then become variable; also called mixed costs or semi-variable costs

Expenses that are fixed until the company reaches a certain level of production, then become variable; also called mixed costs or semi-fixed costs

the sum of overhead and direct costs require to make a product

Business costs that change according to changes in sales volume; also known as variable expenses

Operating costs that fluctuate with changes in production; also known as variable costs

A pricing method in which the business adds a predetermine markup to the total cost of making the product

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4.04 operating cost

Term	Definition
Break-even point	the point at which a business's total sales equal its total expenses; the business has not has not yet made a profit but has not incurred any losses
Capital expenditure	A one-time purchase a business makes ( e.g. , land, building, equipment)
Depreciation	Loss of value
Economic of scale	Cost savings created by increased levels of production
Fixed costs	Business costs that are not affect by changes in sales volume; also known as fixed expenses
Fixed expenses	Operating costs that do not increase or decrease with changes in production ; also known as fixed costs
Gross profit	A company's revenue after subtracting the costs of the products it has sold
Mixed costs	Expenses that are fixed until the company reaches a certain level of production, then become variable; also called semi-variable costs or semi- fixed costs
Operating costs	The ongoing , day -to-day expenses of running a business that are not not directly related to production
Price-based costing	A pricing in method in which the business determines how much customers will pay for a product , then adjusts costs accordingly
Price markup	the different between the total costs of a product and its selling price
Sales commission	An amount of a salesperson earns per sale, either a percentage or flat rate
Semi-fixed costs	Expenses that are fixed until the company reaches a certain level of production, then become variable; also called mixed costs or semi-variable costs
Semi-variable costs	Expenses that are fixed until the company reaches a certain level of production, then become variable; also called mixed costs or semi-fixed costs
Total cost	the sum of overhead and direct costs require to make a product
Variable costs	Business costs that change according to changes in sales volume; also known as variable expenses
Variable expenses	Operating costs that fluctuate with changes in production; also known as variable costs
Cost based pricing	A pricing method in which the business adds a predetermine markup to the total cost of making the product

Created by: jaylen.w739

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