3.2 Costs and revenues Flashcards
1
Q
Fixed costs
A
Costs of production that do not change with the level of output.
2
Q
Variable costs
A
Costs of production that do change according to the level of output.
3
Q
Semi-variable costs
A
Have characteristics of both fixed and variable costs
4
Q
Direct costs
A
Costs that can be clearly and specifically identified with the output of a certain product or project.
5
Q
Indirect/overhead costs
A
Costs that cannot be clearly identified with the production or sale of a particular good or service.
6
Q
Total revenue
A
Income from the sale of goods and services
TR = Price * Quantity sold.
7
Q
Revenue streams
A
Another source of revenue.
