E OBJ 4.04 Vocab

Fixed cost

• Operating costs that do not increase or decrease with changes in production

• A company’s revenue after subtracting the costs of the products it has sold

• Operating costs that fluctuate with changes in production

• Expense which contains both a fixed-cost component and a variable-cost component

Gross profit

• A company’s revenue after subtracting the costs of the products it has sold

• The ongoing, day-to-day expenses of running a business that are not directly related to production

• Operating costs that do not increase or decrease with changes in production

• An amount a salesperson earns per sale, either a percentage or a flat rate

Operating costs

• The ongoing, day-to-day expenses of running a business that are not directly related to production

• An amount a salesperson earns per sale, either a percentage or a flat rate

• The sum of the overhead and direct costs required to make a product

• Operating costs that fluctuate with changes in production

Sales commission

• An amount a salesperson earns per sale, either a percentage or a flat rate

• The sum of the overhead and direct costs required to make a product

• Operating costs that fluctuate with changes in production

• estimation of revenue and expenses over a specified future period of time and is usually compiled and re-evaluated on a periodic basis

Total cost

• The sum of the overhead and direct costs required to make a product

• Operating costs that fluctuate with changes in production

• The ongoing, day-to-day expenses of running a business that are not directly related to production

• Operating costs that do not increase or decrease with changes in production

Variable cost

• Operating costs that fluctuate with changes in production

• Expense which contains both a fixed-cost component and a variable-cost component

• Operating costs that do not increase or decrease with changes in production

• Costs which contains both a fixed-cost component and a variable-cost component

Semi-variable cost

• Operating costs that fluctuate with changes in production

• Costs which contains both a fixed-cost component and a variable-cost component

• Operating costs that do not increase or decrease with changes in production

• The ongoing, day-to-day expenses of running a business that are not directly related to production

Budget

• Estimation of revenue and expenses over a specified future period of time and is usually compiled and re-evaluated on a periodic basis

• Costs which contains both a fixed-cost component and a variable-cost component

• A company’s revenue after subtracting the costs of the products it has sold

• The sum of the overhead and direct costs required to make a product