Business M 3.3

Average cost

Revers to the cost per unit of output.

Average revenue

Referentie the value of sales recieved from customers per unit of a good or service sold.

Cost

Refers to the sum of money incurred by a business in the production process, such as the costs of raw materials, wages, salaries, insurance.

Direct costs

Are costs specifically attributed to the production or sale of a particular good or service.

Fixed costs

Are the costs that do not vary with the level of output. They exist even is there is no output.

Indirect costs

Are costs that do not directly relate to the production or sale of a specific product.

Price

Refers to the amount of money a product is sold for

Revenue

Is the money that a business earns for the sale of goods and services.

Profit

Exists if there is a positive difference between a firms total revenues and its total costs

Revenue stream

Refers to the money coming into a business from the various business activities (sponsorships. Merchandise)

Running costs

Are the ongoing costs of operating the business.

Set up costs

Are the items of expenditure needed to start a business

Total costs

Are the sum of all variable costs and all fixed costs of production

Total revenue

Refers to the money coming into a business usually from sales of goods and services.

Variable costs

Are costs of production that change in proportion to the level of output. (Raw materials, wages)