Business costs Flashcards
What is the start up cost?
The amount of money spent setting up a business before it starts trading e.g a print shop needs a computer and copier to start a business.
What is the operating cost?
Money spent on a regular basis to keep a business running e.g a print shop has to buy paper and pay for electricity.
Define income.
Money which is paid into a business
What are variable costs?
These costs are directly related to the number of items sold or produced e.g driving instructors use more fuel if they have more clients because they are on the road more
What is the total cost?
The total amount of money spent running a business over a certain period of time (e.g a month).
How do you find the total cost?
Total costs = fixed costs + variable costs
Define profit
The revenue is more than expenditure.
Define loss
The expenditure is more than the revenue.
How do you calculate profit?
Profit/ loss = revenue - expenditure
What is expenditure?
Money that a business spends.
Define overheads
The everyday running costs of the business.
