HHS_MKTG23

cost-based pricing

a business determines how much it costs to make a product- and then adds a predetermined markup to set its selling price. this an example of

operating

when attempting to reduce costs, most businesses will first cut ______ costs

ha reached its breakeven point.

when total sales equal total expenses, the business

They are not directly related to production

which of the following is a true statement regarding operating cost.

some my be considered either fixed or variable

which of the following is a true statement regarding operating costs

Overhead

which of the following is another name for operating cost?

pest control

which of the following operating costs is most likely to be considered fixed by one business and variable by another business

price-based costing

a business has determined that customers are willing to pay $25 for its product. managers attempt to make the product for $15, so the business can make a $10 profit. this is an example of

economy of scale

a business has increased its production as a way to spread out its fixed operating costs. the business has created

fixed

a business's rent or mortgage is a expense

its selling price

a price markup is the difference between how much it costs to make a product and

semi-fixed expense

considered together, salaries and sales commissions are a

keep them as low as possible

most businesses' approach to operating cost is to

capital expenditures

operating costs are the opposite of

semi-variable

operating costs that are fixed until the business reaches a certain level of production and then become variable are known as_____ expenses

fixed

operating costs that do not increase or decrease with changes in production are called expenses

variable

operating costs that fluctuate with changes in production are called ____expenses

variable

sales commissions are a ____ expense

gross profit

the revenue a company makes after subtracting he costs of the products it has sold is called

total cost

the sum of the operating and direct expenses required to make a product is its