Financial forecasting

_____________are costs for a specific product or way of production. Examples of direct costs are raw materials and labour.

• indirect costs

• variable costs

• Direct costs

• fixed costs

___________________ are costs that are not for a specific product or service. Examples of indirect costs are rent and insurance.

• Expenditure

• loss

• profit

• Indirect costs or overhead costs

_______________ are costs that do not change with the number of products or service that a business provides. Fixed costs usually include indirect costs, for example, rent and insurance.

• variable costs

• indirect costs

• direct costs

• Fixed costs

________________are costs that will change with the number of products or service that a business provides. Variable costs usually include direct costs, for example, labour and raw materials.

• indirect costs

• direct costs

• fixed costs

• Variable costs

_______________ costs are also called semi-fixed costs. They stay the same to a certain point and change when the level of production changes, for example, workers on commission.

• loss

• profit

• Semi-variable

• direct costs

A business needs to _____________ , ______________or ___________so that they can make a profit. To make a ____________, a business must consider how much they will receive and how much they will spend. They must receive more money than the total costs of the business.

• sell

• products

• services

• profit

A business needs to understand the __________ of its ___________ and _____________. ______________ is the amount of revenue that is available to pay for fixed costs after variable costs have been subtracted.

• contribution

• products

• services

• contribution