3.3 Costs and Breakeven IGCSE

Front

Break-even chart

Back

A graph that shows total cost and total revenue; break-even point is where total cost and total revenue intersect.

Front

Break-even point

Back

The level of output where total costs and total revenue are exactly the same: neither a profit nor a loss is made.

Front

Cost plus or cost-based pricing

Back

Adding a percentage (the mark-up) to the costs of producing a product to get the price.

Front

Costs

Back

Expenses that must be met when setting up and running a business.

Front

Fixed costs

Back

Costs that do not vary with the level of output.

Front

Fixed capital

Back

Stock of human-made resources, such as machines and tools, used to help make goods and services.

Front

Variable costs

Back

Costs that change when output levels change.