Entrepreneurship - Finance Vocab

Front

Expense:

Back

money spent on resources for the business

Front

Variable expense differs from fixed expense because...

Back

it changes

Front

Example of a fixed expense:

Back

insurance

Front

Example of a variable expense:

Back

labor

Front

Amount of product/service used to determine operations and profit.

Back

unit of sale

Front

Economics of one Unit of Sale

Back

Contribution Margin = Selling price - variable expenses

Front

If a company has economies of scale, they can:

Back

spread costs over a larger volume of product

Front

Acronym for common fixed costs?

Back

I SAID U ROX

Front

Accounting method to spread equipment cost over its usage years.

Back

Depreciation

Front

Break Even =

Back

Sales = Expenses