3.3 Costs and Break-even Analysis Flashcards
1
Q
What are fixed costs?
A
A set value that can’t change depending on production or sales
2
Q
What are variable costs?
A
Something that different (external) favors that can set
3
Q
What are total costs?
A
The final added value of multiple goods/services
4
Q
Examples of fixed costs?
A
Electric bills
Rent
Insurance
Interest
Staff salaries
Gas
5
Q
Examples of variable costs?
A
Packaging
Incentives and bonuses
Delivery costs
Piece work staff
Raw materials
6
Q
What’s breakeven?
A
When the business is not making a loss or profit
7
Q
What does break-even analysis not assume?
A
External environment is unstable
8
Q
When does the break-even point change?
A
When costs change in any way
