Entrepreneurship I - Objective 4.04 Vocabulary Quiz

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

• Operating Costs

• Breakeven Point

• Total Costs

• Economies of Scale

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

• Sales Commission

• Variable Expenses

• Capital Expenditure

• Fixed Expenses

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

• Cost-Based Pricing

• Price-Based Costing

• Operating Costs

• Fixed Expenses

Loss of value

• Capital Expenditure

• Depreciation

• Sales Commission

• Economies of Scale

Cost savings created by increased levels of production

• Variable Expenses

• Fixed Expenses

• Economies of Scale

• Price Markup

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

• Semi-Variable Costs

• Fixed Expenses

• Variable Expenses

• Mixed Costs

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

• Gross Profit

• Sales Commission

• Total Cost

• Breakeven Point

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

• Total Costs

• Fixed Expenses

• Mixed Costs

• Variable Expenses

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

• Mixed Costs

• Total Cost

• Operating Costs

• Semi-Fixed Costs

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

• Breakeven Point

• Operating Costs

• Price Markup

• Depreciation