the difference between sales revenue and direct costs of production

allocates overheads to ensure that each product bears its fair share of costs, taking into account the different types of overheads that have to be paid. This is also called absorption costing.

the average cost of producing a single unit of output.

_______________ can be related to the production of a particular product and vary directly with the level of output

overheads that cannot be allocated to the production of a particular product and relate to the business as a whole.

the amount by which revenue exceeds total costs

responsible for the use and management of a particular budget

a budget which is designed to change along with the sales volume or production levels.

process of investigating any differences between forecast data and actual figures.

when budgets are automatically set at zero and budget holders have to argue their case to receive any funds.

the raw materials, components and finished goods held by a business at a given time.

the reduction in the value of a non-current asset over a period of time

patents, copyrights, trademarks, goodwill, and other items that have no physical existence but provide long-term benefits to the company.

the reduction in value of intangible assets, such as goodwill and brands, over time

a means of valuing inventories (or other assets) at the amount that would be raised by selling them less any costs involved in the sale of the inventories.

when a business is sold for a value greater than that which is recorded on its statement of financial position.

accounting statement showing a firm’s sales revenue over a trading period and all the relevant costs generated to earn that revenue.