Instructions
Match the key term to it's description by dragging the term in the green boxes to match up with the correct definition in the yellow box.
Key terms
Definition
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- Revenue
- Profit
- Fixed costs
- Variable costs
- Total costs
- Average total costs
- Direct costs
- Overheads
- Break-even point
- Margin of safety
- Contribution (per unit)
- This is the money a business makes from sales. It is the value of the sales and is also referred to as turnover.
- This is the difference between revenue and costs.
- This is a cost to a business that does not change in the short run.
- These costs rise as output rises.
- These are the entire costs for a business. This is calculated by adding together fixed costs and variable costs.
- These are the average cost of producing each unit of output. This is calculated by dividing the total cost by output.
- These are costs that arise specifically from the production of a product or the provision of a service.
- These are costs that are not directly related to production.
- This is where the total costs and the total revenue are the same.
- This is the difference between output level and break-even output, when output is above break-even.
- This is the money left over after variable costs have been subtracted from the selling price.