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8 Cards in this Set
- Front
- Back
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Breakeven |
The level of production or output at which point the businesses sales revenue is exactly equal to its total costs. |
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Fixed Costs |
These types of costs do not change when the business alters it production levels.eg: salaries,rent etc |
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Variable costs |
These costs change when the production level is altered. eg:raw material, component etc. |
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Semi variable cost |
Contains both fixed and variable to this sort of costs. Eg: telephone bills may have a flat fee per month plus the charge for the calls made by the business |
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Total cost |
All cost added together. |
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Marginal cost |
The change in total cost when the business produces a additional single unit of output. |
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Direct and Indirect cost |
Direct cost can be linked back to a particular product. Varies with the level of output. |
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Special order |
Orders that are not on the businesses normal terms. Usually accepted if there is a positive contribution and possess financial benifits. |
