unit 1- cost, revenue& profit Flashcards
1
Q
what are fixed costs?
A
costs that don’t change with output
2
Q
what are variable costs?
A
costs that change dependant on the level of output
3
Q
what are total costs?
A
fixed costs + variable costs
4
Q
what is profit?
A
total revenue - total cost
5
Q
what is the margin of safety?
A
the amount by which a firms current level of output exceeds the level of output necessary to breakeven
6
Q
what is a budget?
A
a budget is an expected amount of money that will with be spent or received in a set amount of time
