Definitions
Depreciation
Loss of value
What is the difference between Variable costs and Fixed Costs?
What is Fixed costs are business costs that are not affected by changes in sales volume while Variable costs are
The difference between the total cost of a product and its selling price
What is price markup
Mark works for a company that sells candles. At the end of each month, Mark must calculate the _____ to know the cost of the company's candles that have been sold
What is Gross Profit
What is another name for Mixed costs
A. Break even point
B. Fixed Costs
C. Semi fixed Costs
D. Variable costs
What is semi fixed costs?
Variable Costs
What is Costs that change according to changes in sales volume
What is the difference between Mixed costs and Semi-Fixed costs?
What is both are fixed until the company reaches a certain level of production.
An amount a salesperson earns per sale, either a percentage or a flat rate
What is sales commission
Sally works for a company and earns a ____ because she helps generate more revenue for the company she works for
What is sales commission
What is variable costs also known as?
A. Variable Expenses
B. Total Costs
C. Gross Profit
D. Fixed Expenses
What is Variable expenses
Capital Expenditure
What is A one time purchase a business makes
What is cost based pricing is when the business adds a predetermined markup to the total cost of making the product while Price based is when a business determines how much customers will pay for a product them adjust costs accordingly.
Cost savings created by increased levels of production
What is economies of scale
Liam is a car salesman. Many cars he sale hold a lot of value, however, once they are driven off the lot, they suffer _____.
What is Depreciation?
Which is a Capital expenditure?
A. Insurance
B. Advertising
C. Building
D. Office supplies
What is building
Gross Profit
What is A company's revenue after subtracting the costs of the products it has sold
What is the difference between price markup and total cost?
What is Price markup is the difference between the total cost of a product and its selling price while total cost is the sum of the overhead and direct costs required to make a product
Operating costs that fluctuate with changes in production
Polly Pocket recently decided to do ______ to help determine how her customers will pay for a product.
What is Price Based Costing
What is Economies of Scale?
A. Loss of Value
B. The ongoing, day to day expenses of running a business that are not directly related to production
C. Expenses that are fixed until the company reaches a certain level of production
D. Cost savings created by increased levels of production
What is cost savings created by increased levels of production
Break Even Point
What is the point at which a business's total sales equal its total expenses
What is the difference between operating costs and capital expenditure
What is operating costs are the ongoing, day to day expenses running as business while capital expenditure is a one time purchase a business makes
Operating costs that do not increase or decrease with changes in production
What is fixed expenses
Timmy owns a successful hat company. His company's _____ each time they purchase fabric to make more hats
What is Variable Costs
Who earns a sales commission?
A. Account managers
B. Real estate Agents
C. Customer service representatives
D. Administrative assistant
What is real estate Agent