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