Cost/revenue/profit Flashcards
What is the definition of direct costs?
A direct cost is a cost that can be clearly associated with specific activities or products.
What is the definition of indirect costs?
Costs that are not directly accountable to a cost object.
Can be fixed of variable.
Include administration, personnel and security costs.
What is the definition of fixed costs?
Business costs, such as rent, that are constant whatever the amount of goods produced.
What is the definition of variable costs?
A cost that varies with the level of output.
What is the definition of running costs?
Amount of money that is regularly spent on things such as salaries, heating, lighting, and rent.
What is the definition of start up costs?
Non-recurring costs associated with setting up a business.
Also called start-up expenses, preliminary expenses, or pre-opening expenses.
What is the formula for sales revenue?
Income from sales of goods and services, minus the cost associated with things like returned or undeliverable merchandise.
What is the formula for profit?
Total revenue - total costs
Name 4 types of indirect costs
A particular: Project Facility Function Product
Name 5 types of start-up costs
Accountant's fees Legal fees Advertising Promotional activities Employee training
What is the definition of profit?
A financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.
