Business Vocabulary: Profitability, Budgets, and Economies of Scale

Comprehensive vocabulary flashcards covering profitability, product strategies, budgeting, expenditure, economies of scale, and the learning curve.

Make a Profit

The financial result when a business earns more money than it spends.

Profitable / Profit-Making

Describes a product or business that earns a profit because it sells for more than its cost.

Break Even

To reach a state of no profit and no loss, where the selling price is exactly the same as the cost ($\text{Selling Price} = \text{Total Costs}$).

Break-Even Point

The exact point where total sales equal total costs.

Make a Loss

The financial result when a business loses money because costs are higher than sales.

Loss-Making

Describes a product or business that loses money because it sells for less than its cost.

Loss-Leader

A product that makes a loss but is sold cheaply to attract customers to the store, anticipating they will also purchase profitable products.

Money Spinner

A product that sells well, generates high profit, and has very good profitability.

Cash Cow

A product that continuously produces strong profit and generates a large amount of profit for the business over time.

Budgeted For

Planned money set aside to spend on a specific activity or item.

Over Budget

The condition of spending more money than was originally planned in the budget.

Overspend

To spend too much money beyond what was allocated or planned.

Underspend

To spend less money than was planned in the budget.

Under Budget

The condition of spending less than the planned budget limit.

Expenditure

Money spent by a business or person.

Advertising Spend

The specific amount of money used or spent on advertisements.

Economies of Scale

Lower costs resulting from larger production, where producing more products reduces the cost per unit.

Diseconomies of Scale

A situation where costs increase when a company or factory becomes too large and difficult to manage.

Experience Curve

The principle that workers and companies gain efficiency and become faster and more productive with experience over time.

Learning Curve

The improvement in speed and skill achieved through repeated practice.

Efficiently

Working quickly and effectively.