Entrepreneurship II: Objective 2.02 Vocabulary Test

The point at which a business’s total sales equal total expenses; the business has not yet made a profit but has not incurred any losses.

A one-time purchase a business makes (e.g., land, building, equipment).

A pricing method in which the business adds a predetermined markup to the total cost of making the product.

Loss of value.

Cost savings created by increased levels of production.

Operating costs that do not increase or decrease with changes in production.

A company’s revenue after subtracting the costs of the products it has sold.

Expenses that are fixed until the company reaches a certain level of production, then become variable; also called semi-variable costs or semi-fixed costs.

The ongoing, day-to-day expenses of running a business that are not directly related to production.

The difference between the total cost of a product and its selling price .