24. Costs Flashcards
1
Q
What are the different types of costs a business has (6)
A
Direct Fixed Indirect Variable Marginal Average
2
Q
direct costs
A
The cost directly linked to production
3
Q
indirect costs
A
costs that cannot be linked to production
4
Q
fixed costs
A
costs that do not change no matter whatever else is happening
5
Q
variable costs
A
costs that change with the level of production
6
Q
marginal costs
A
the extra cost of producing extra units
7
Q
average costs
A
total costs / total output
8
Q
profit
A
total revenue exceeding total costs
9
Q
loss
A
total costs exceeding total revenue
