FIN INVEST 5258 Midterm Review

A budget helps businesses primarily to:

• Increase expenses

• Track income and expenses

• Hire more employees

A company's profit after all expenses is:

• Gross income

• Net income

• Revenue

A cost that increases with more production is a:

• Fixed expense

• Variable expense

• Static expense

An account showing a company's income and expenses is a:

• Inventory list

• Budget

• Invoice

Assigning tasks based on employee expertise is called:

• Job rotation

• Specialization of labor

• Cross-training

Breaking down a large task into smaller tasks is known as:

• Job sharing

• Division of labor

• Work simplification

Expenses that do not change, like rent, are:

• Variable expenses

• Fixed expenses

• Retention expenses

Expenses that fluctuate based on production levels are:

• Fixed costs

• Variable costs

• Sunk costs

Gross income minus expenses equals:

• Net income

• Total revenue

• Variable cost

Products like food and flowers are classified as:

• Expendable

• Non-perishable

• Perishable