Chapter 26, Costs revenue and Profit Flashcards Preview

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Flashcards in Chapter 26, Costs revenue and Profit Deck (11):
1

Fixed costs

costs do not vary with the level of output ( factory, machinery, business rates)

2

Overheads/indirect costs

costs that cannot be attributed to a particular unit of output

3

Direct costs

costs that are directly attributed to a unit output ( raw materials

4

Variable Costs

costs that change in proportion to the level of goods or services a business produces

5

Total Costs

fixed costs + variable costs

6

Unit Costs

the cost of producing one unit = total / output

7

Marginal costs

the coats of production one extra unit

8

Opportunity Costs

what a business could of spent money on

9

Standard Costs

costs that a business would expect to have in the production of a product

10

Abortion Costs

where all indirect costs and overheads are absorbed by different costs centres

11

Contribution

is the selling price of a product minus the variable costs of producing it