Profit, Loss & Break-even

Question 1

Describes the financial benefit when revenue generated from the business exits the expenses cost and taxes involved in sustaining the business

Answer 1

Profit

Question 2

Is a decrease in net income that is outside the normal operations of business

Answer 2

Loss

Question 3

Having equal costs and income

Answer 3

Break-even

Question 4

Is the point at which the cost and revenues are equal

Answer 4

Break-even point (BEP)

Question 5

Are the cause that do not change with varying outputs (salary, rent, building machines)

Answer 5

Fixed Cost (FC)

Question 6

The cost incurred to create a unit (employee labor, raw materials, sales commissions)

Answer 6

Variable Cost (VC)