Entrepreneurship II: Objective 2.02 Vocabulary Test

Front

The point at which a business’s total sales equal total expenses; the business has not yet made a profit but has not incurred any losses.

Back

Breakeven Point

Front

A one-time purchase a business makes (e.g., land, building, equipment).

Back

Capital Expenditure

Front

A pricing method in which the business adds a predetermined markup to the total cost of making the product.

Back

Cost-Based Pricing

Front

Loss of value.

Back

Depreciation

Front

Cost savings created by increased levels of production.

Back

Economies of Scale

Front

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

Back

Fixed Costs

Front

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

Back

Gross Profit

Front

Expenses that are fixed until the company reaches a certain level of production, then become variable; also called semi-variable costs or semi-fixed costs.

Back

Mixed Costs

Front

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

Back

Operating Costs

Front

The difference between the total cost of a product and its selling price.

Back

Price Markup