Chapter 26, Costs revenue and Profit

Question 1

Fixed costs

Answer 1

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

Question 2

Overheads/indirect costs

Answer 2

costs that cannot be attributed to a particular unit of output

Question 3

Direct costs

Answer 3

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

Question 4

Variable Costs

Answer 4

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

Question 5

Total Costs

Answer 5

fixed costs + variable costs

Question 6

Unit Costs

Answer 6

the cost of producing one unit = total / output

Question 7

Marginal costs

Answer 7

the coats of production one extra unit

Question 8

Opportunity Costs

Answer 8

what a business could of spent money on

Question 9

Standard Costs

Answer 9

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

Question 10

Abortion Costs

Answer 10

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

Question 11

Contribution

Answer 11

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