Business Costs & Income Statements
Operational Expenses
an expense incurred in carrying out an organization's day-to-day activities, but not directly associated with production
Revenue
another term for "sales"
Income Statement
a financial statement that reports a company's revenues and expenses and resulting net income or net loss for a specific period of time
Cost of Goods Sold
cost of the inventory that was sold during a certain period
Fixed Costs
costs that do not vary with production or sales level
Variable Costs
costs that vary with the quantity of output produced
Income
earnings received as wages, salaries, bonuses, commissions, interest and dividends, or proceeds from the sale of assets
Start-up Costs
the expenses a new business must pay before it can begin to produce and sell goods
Break-even Point
the point at which the costs of producing a product equal the revenue made from selling the product
Profit
total revenue minus total cost
Loss
when a business's expenses are more than its revenues