Term
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Definition
| Costs that can be clearly identified with each unit of production and can be allocated to a cost center |
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Term
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Definition
Costs which cannot be identified with a unit of production or allocated accurately to a cost center
Also known as overhead costs |
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Definition
| Costs that do not vary depending on the level of output |
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Term
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Definition
| Costs that vary depending on the level of output |
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Term
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Definition
| Costs that have both a fixed and a variable cost element |
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Term
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Definition
| The income received from the sale of a product |
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Term
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Definition
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Term
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Definition
| The income that an organization gets from a particular activity |
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Term
| What are the benefits of having more than one revenue stream? (2) |
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Definition
-Higher total revenue
-A form of diversification; if one revenue stream isn't doing so well, the others can make up for it |
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Term
| What are the drawbacks of having more than one revenue stream? (3) |
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Definition
-More work; each activity needs to be managed and controlled (significant drawback for a sole trader)
-Loss of focus
-Profit centers will need to be established so that the financial info of each revenue stream can be tracked |
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