Break-even Flashcards
1
Q
Break-even Analysis
A
Break-even is the point at which a business is not making profit or a loss. The money received from sales is the same as the money being spent on costs. Total Revenue = Total Costs
2
Q
Variable Costs
A
Costs that change with the level of output e.g. raw materials
3
Q
Semi-variable Costs
A
Paid of the cost stays the same and part varies in relation to the degree of business activity e.g. a worker paid a fixed rate of pay but i addition may receive variable amounts overtime
4
Q
Fixed Costs
A
Cost that do not vary with output. they remain the same e.g. rent
5
Q
Total Costs
A
Total costs = fixed costs + total variable costs
6
Q
Total Revenue
A
The total amount of money coming in from sales. Total Revenue = selling pice x quantity sold.
7
Q
A
