3.3 - Cost and Revenue

cost

the expenditure in producing a good/service

set up cost

Items of expenditure needed to start a business

running cost

The ongoing cost of running the business

fixed cost

Cost of production that a business must pay regardless of how much it produces or sell

variable cost

cost of production that change in proportion to the level of output

total cost

Aggregate amount of money spent on the output of a business

Direct cost

Cause that can be identified with or clearly attributed to the production of a particular product department or process

Indirect cost

Cause that cannot be clearly traced to the production or sales of any single product

revenue

Money coming into a business earn from selling goods and or services

revenue Streams

A businesses earning from its full range of trading