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Are the expenses that do not alter in relation to change in demand or output |
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Ones that varies in direct proportion to change in output, such as raw materials, components, piece labour rate and energy used in production |
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| Study of the relationship between sales revenue and total costs to discover the point a which profit can be made |
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Definition
What is left from revenue after costs are deducted |
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Definition
| Are fixed costs added together |
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| Is the revenue of sales made within a trade period |
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Definition
| Are costs that are not generated directly by the production process |
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Definition
Any costs which can be allocated percisley to a cost centre and which varies in direct proportion to activity or output |
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Definition
A line graph showing total revenue and cost at all possable level of output, demand
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Definition
| The intersection of total revenue and total costs on a break even chart |
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Definition
Is the level of output at which a firm's sales generate enough revenue to cover all costs of production
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Definition
Is the total revenue minus total variable cost
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Definition
Is the amount each unit sold contributes towards couering the fixted overheads of the busuniess
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Definition
Is the sum of cash inflows to the orgaisation minus the sum of cash outflows over a specific period
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Term
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Definition
Controling cash inflows and cash outflows so to maximuise cash requirements
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