Cost Effective

Question 1

Fixed costs

Answer 1

Costs which are fixed and don’t change every month. E.g. rent, bank loan, salaries

Question 2

Variable cost

Answer 2

Costs that is constantly changing every month. E.g. raw materials, wages, electricity bills

Question 3

Productivity

Answer 3

Efficiency of a firm

Question 4

Automated

Answer 4

Processes that are fully carried out by machinery rather than people.

Question 5

Improving efficiency in business

Answer 5

Training
Better equipment
Motivation
Better communication

Question 6

Improved purchasing

Answer 6

Buy better, buy some materials for less money(offers)

Question 7

Relocation

Answer 7

Relocate a business, so less money is spend on transport

Question 8

Better design

Answer 8

Improve the design of the product, to use less material

Question 9

Cut overhead costs

Answer 9

Reducing unnecessary overhead costs

Question 10

Break even point

Answer 10

When the total revenue exactly matches with the total costs and the business is not making a profit or a loss.
Break even point=fixed costs/price-cost