BTEC BUSINESS
What is a start-up costs? - ANSWERBusinesses spend money before they ever open their
doors. Startup expenses are those expenses incurred before the business is running.
What is a running costs? - ANSWER(in a business) the amount of money that is
regularly spent on things such as salaries, heating, lighting, and rent
What is direct costs? - ANSWERA direct cost is a price that can be completely attributed
to the production of specific goods or services. Some costs, such as depreciation or
administrative expenses, are more difficult to assign to a specific product and therefore are
considered to be indirect costs.
What is indirect costs? - ANSWERIndirect costs are costs that are not directly
accountable to a cost object (such as a particular project, facility, function or product). Indirect
costs may be either fixed or variable. Indirect costs include administration, personnel and
security costs.
What is fixed costs? - ANSWERis a cost that does not change with an increase or
decrease in the amount of goods or services produced or sold.
, What is variable costs? - ANSWERa cost that varies with the level of output.
How can you calculate gross profit? - ANSWERGross profit = Revenue - Cost of sales
What is cost of sales? - ANSWERThe cost of producing a product
A positive gross profit doesn't always mean that the net profit will be... -
ANSWERPositive
If the gross profit is negative... - ANSWERThere is nothing left to deduct overheads
from meaning there is no chance of the business making a profit
The larger the gross profit... - ANSWERThe greater chance of a positive net profit
What is net profit? - ANSWERMoney left over once all costs have been deducted
What needs to be positive to make a net profit? - ANSWERGross profit
What is a start-up costs? - ANSWERBusinesses spend money before they ever open their
doors. Startup expenses are those expenses incurred before the business is running.
What is a running costs? - ANSWER(in a business) the amount of money that is
regularly spent on things such as salaries, heating, lighting, and rent
What is direct costs? - ANSWERA direct cost is a price that can be completely attributed
to the production of specific goods or services. Some costs, such as depreciation or
administrative expenses, are more difficult to assign to a specific product and therefore are
considered to be indirect costs.
What is indirect costs? - ANSWERIndirect costs are costs that are not directly
accountable to a cost object (such as a particular project, facility, function or product). Indirect
costs may be either fixed or variable. Indirect costs include administration, personnel and
security costs.
What is fixed costs? - ANSWERis a cost that does not change with an increase or
decrease in the amount of goods or services produced or sold.
, What is variable costs? - ANSWERa cost that varies with the level of output.
How can you calculate gross profit? - ANSWERGross profit = Revenue - Cost of sales
What is cost of sales? - ANSWERThe cost of producing a product
A positive gross profit doesn't always mean that the net profit will be... -
ANSWERPositive
If the gross profit is negative... - ANSWERThere is nothing left to deduct overheads
from meaning there is no chance of the business making a profit
The larger the gross profit... - ANSWERThe greater chance of a positive net profit
What is net profit? - ANSWERMoney left over once all costs have been deducted
What needs to be positive to make a net profit? - ANSWERGross profit
