business studies

Start up cost

The cost incurred in setting up a business eg buying till shelves and fridge an improving the property to make it suitable for the business

Operating costs

Incurred in the day to day running of the business eg buying daily stock,milk,rent,paying wages

Fixed cost

costs that do not change eg rent

Variable costs

Change as output increases eg materials

Total costs

Fixed and variable added together

Rent recieved

One way to make extra money is to rent out part of your premises

Interest received

Businesses leave money in the bank and receive money for not talking it out

Commission received

Is businesses sell eachothers goods they may receive a sum of money for doing it

Discount received

if a business buys from another business it is something given a reduction price

Break even

Fixed cost divide by selling price - variable cost

InDirect

The company sells throught partners,distributors or agents

direct

The company sells straight to the customer