Costs and type of costs

Refer to the expenses incurred by a business in the production of goods or services.

• Loan capital

• Costs

• Crowdfounding

• Sale of assets

Fixed Costs:

These are costs that do not change with the level of production or sales. They remain constant over time. (What are the examples)

• Rent, salaries of permanent staff, insurance, and depreciation.

• Make up, clothes, shoes, bags

• Raw materials, direct labor (wages based on hours worked), and utility costs linked to production.

• Materials

Raw materials, direct labor (wages based on hours worked), and utility costs linked to production. These examples beling to:

• Variable cos

• Direct costs

• Variable costs

• Indirect costs

These are costs that can be directly attributed to the production of a specific product or service.

• Fixed costs

• Business angels

• Rentable prices

• Direct costs

These are costs that are not directly linked to the production of a specific product but are necessary for business operations.

• Direct costs

• Flexible costs

• Indirect costs (overhead)

• Expensive ones

Is the total amount of money generated from the sale of goods or services before deducting any costs.

• Cash flow

• Costs

• Total revenue

• Prices

Are the different ways a business earns money.

• Sales

• Revenue streams

• Business ideas

• Auctions