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BUY AND SELL
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The things needed to make a product- such as materials- labor- and other costs
Elements of a product
Products that are complete and ready to be sold
finished products
Products that are being made but are not finished yet
products in progress
costs for banking and loans like interest
financial expenses
Costs for selling products like advertising
sales expenses
Costs for running the office- like salaries and supplies
Administrative expenses:
new items bought for the business
purchases
the stock of products a business has
inventory
Money a business pays for different things- like buying materials or paying workers
Disbursements:
for running the business -like rent- marketing-and office supplies
Costs vs. Expenses:
for making a product
costs
for things like rent and electricity
Indirect costs
for materials and workers who make the product
Direct costs
Money spent to make a product
costs
The point when a business makes enough money to cover its costs but does not make a profit or a loss
Breakeven
Extra costs in a factory- like electricity- machines- and cleaning that help make products but are not part of the materials
Cargo factory
The things used to make a product like wood for furniture or flour for bread
raw materials
the work that supports the production but does not directly make the product
Indirect labor
the work that directly helps make the product
Direct labor
Work done by people to make a product
labor
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