Business HR

• Unit cost

  = total/ output
• Direct costs


  = directly attributable to output (raw materials)/ directly related to sales
• Break-even point is where revenue equals total costs.
• Overheads


  = not attributed to particular output
• Fixed costs

  =do not vary with output.
• Variable costs


  = change with the output
• Total costs

  = fixed + variable
• Marginal


  = cost of producing 1 extra unit
• Profit loss

  = sales revenue - total costs
• economic entity assumption


  = seperate records for each business entity
• Monetary unit assumption 


  = to include only quantifiable transactions
• Time period assumption

  = using a set period of time
• revenue recognition assumption


  = revenue recorded when earned
• cost principle


  = assets to be recorded at the cost of acquisition
• conservatism


  = less optimistic approach to be adopted