Keywords

Question 1

Cost

Answer 1

Cost is anything a business has to pay for. All businesses have cost that need to be paid.

Question 2

Variable cost

Answer 2

Cost that change as the quality of goods or services produced changes. They are also known as unit-level cost or direct cost because they are directly tried to the number of units produced. (Raw materials, production supplies, delivery cost, packaging supplies, credit card fees).

Question 3

Fixed cost

Answer 3

Cost that don’t change in relation to output, such as rent, salaries, advertising,insurance, and banking fees.

Question 4

Sales revenue

Answer 4

The amount of money a business receives from setting goods or services.

Question 5

Profit

Answer 5

Profit: the difference between a business’s total revenue and its total cost.

Question 6

Loss

Answer 6

Occurs when a business’s revenue are less than cost over a period of time.

Question 7

Shareholders

Answer 7

A company is a legal entity. The owner of a company are shareholders.