Unit 6 Entrepreneurship - Accounting

Amount per unit that a product contributes toward the company’s profitability before the fixed expenses are subtracted.

• economics of one unit

• contribution margin

• unit of sale

• burn rate

Variable expense that is associated with each unit of sale, including the cost of materials and labor used to provide the service.

• economics of one unit

• cost of goods sold (COGS)

• cost of services sold (COSS)

• cash flow

This is calculated by subtracting the variable expenses of the unit from the selling price of the unit. 

• economics of one unit

• unit of sale

• burn rate

• fixed expense

What a customer actually buys from you.

• economics of one unit

• unit of sale

• cash flow

• fixed expense

Expense that changes based on the amount of product or service a business sells.

• fixed expense

• variable expense

• straight line depreciation method

• contribution margin

Expense that isn't affected by the number of items a business produces.

• fixed expense

• variable expense

• cost of goods sold (COGS)

• contribution margin

Money received minus what is spent over a specified period of time. 

• contribution margin

• economics of one unit

• cash flow

• straight line depreciation method

Variable expense that is associated with each unit of sale, including the cost of materials and labor used to make the product.

• cost of goods sold (COGS)

• cost of services sold (COSS)

• contribution margin

• cash flow

Rate at which a company spends cash to cover overhead costs without generating a positive cash flow. 

• burn rate

• contribution margin

• cash flow

• straight line depreciation method

Method used to calculate the depreciation of equipment based on how long the equipment will last. 

• contribution margin

• cash flow

• burn rate

• straight line depreciation method