Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Management 2 > Cost structure and Break-even point > Flashcards

Cost structure and Break-even point Flashcards

1
Q

Learning economies

A

They refer to cumulated production over time and they are often stronger in small/labour-intensive firms

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Economies of scope

A

It is cheaper to produce both products within the same firm then producing good 1 and good 2 seperately
TC(Qx, Qy)<TC(Qx) + TC(Qy)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Break-even point

A

the point where the firm can cover its operating costs (no losses, no profit)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

At what quantity does the firm break even?

A

𝐹𝑖π‘₯𝑒𝑑 πΆπ‘œπ‘ π‘‘/
π‘ƒπ‘Ÿπ‘–π‘π‘’ βˆ’ π‘‰π‘Žπ‘Ÿπ‘–π‘Žπ‘π‘™π‘’ πΆπ‘œπ‘ π‘‘

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

At what revenue does the firm break-even?

A

𝑓𝑖π‘₯𝑒𝑑 π‘π‘œπ‘ π‘‘π‘ /
π‘π‘Ÿπ‘–π‘π‘’ βˆ’ π‘£π‘Žπ‘Ÿπ‘–π‘Žπ‘π‘™π‘’ π‘π‘œπ‘ π‘‘/
π‘π‘Ÿπ‘–π‘π‘’

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Total contribution margin

A

pxQ-VCxQ

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

% Contribution margin

A

(p-VC)/p

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Operating leverage

A

Size of the are between the revenue and the total costs line above and below the BEP

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Operating Elasticity

A

flexibility of the firms
VCxBEP/FC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Profit point

A

FC+TOI/p-VC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly

Management 2 (8 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions