costs and revenue Flashcards
definition of costs/expenditure
capital leaving a biz
What costs come under the start-up costs. give an example
consists of what needs to be paid before opening the biz.
- eg - furniture.
what costs come under the operating costs. give an example
what is paid during day to day operations eg - wages.
- what are the different types of bus operations?
- are they direct or indirect?
1) fixed costs (indirect)
2) variable costs (direct)
3) semi-variable costs ( direct)
definition of fixed costs
costs that arise in a business but remain the same no matter how many products are produced.
examples of fixed costs?
list 3
1) property rent
2) staff salaries
3) insurance
definition of variable cost
costs paid out in direct proportion to how many products are produced.
example of variable cost?
list 3
1) raw materials
2) packaging
3) wages
definition of semi variable cost
Costs that change when there is a large change in output or when there is a fixed and variable element.
example of semi-variable costs?
list 1
telephone bill
definition of revenue expenditure
expenditure used for day to day running of the bus
what account is RE shown in?
profit and loss
examples of RE?
list 6
1) marketing expenditure
2) wages and salaries
3) rental payments
4) patrol
5) ink cartridges
6) raw materials
definition of capital expenditure
expenditure on major items that last for more than 1 year
where are the CE shown?
they are assets shown on the balance sheet
