Definitions Flashcards
Intangible Cost
Services, generally in the Tertiary Sector and are something you cannot physically see or touch.
Tangible Cost
Goods and are something you can physically see or touch.
Direct Cost
Costs directly associated with a job or contract.
I.e cement for a construction site.
Indirect Cost
Cost that are not directly associated with a job or contract. Often referred to as ‘Overheads’
Variable Cost
Can change as they are linked to the output of the business. Related to number of goods produced/ sold or number of services supplied.
Fixed Cost
Does not change with the output of the organisation.
Capital Purchase
One-off purchases.
I.e Buildings
Primary Sector
Industry that extracts raw materials or products that are extracted from their natural source.
Secondary Sector
Manufacturing or assembly process. Components used to create a product
Tertiary Sector
Commercial services that help run an organisation
Finished goods
Finished products - I.e Retail
TCA
Total Cost of Acquisition- Total cost incurred in acquiring a product.
TCO
Total Cost of Ownership - Total Cost incurred by owning a product throughout its useful life. Include acquisition, use, maintenance and disposal.
CSR
Corporate Social Responsibility- A business’s approach that contributes to sustainable development by delivery social, environmental and economic Benefits to stakeholders.
Upstream
Getting raw materials needed for production.
