Formulae Flashcards
1
Q
Define short term funds
A
Have to pay in 1 year
2
Q
Define short-term funds
A
Sources of founds to pay back acter 1 year
3
Q
Define long term funds
A
Sources of funds to pay in 2 years or over one year
4
Q
Why are direct costs = variable cost
A
- direct costs: related to product;
- variable costs: changes with output;
- if no output, no direct cost, therefore direct costs = variable cost:
