entrepreneurship

• inputs are the materials needed for processing to come up with finished products
• output means finished products
• process is the step-by-step procedure followed in transforming materials into finished products
• production plan involves the necessary raw materials and parts, number of workers, types of machines needed, and the completion time for such operation involved
• projected sales are the expected results of variable cost and fixed cost within the target period
• sales management involves formulation of sales strategy
• trial-run is the actual testing of a business
• viability means the practicability of a business
• CAPITAL COST   -  a payment of interest for the duration of the loan
• COST    -  represents form of payment
• PRODUCTION   -  process of making or manufacturing goods
• DIRECT COST  -  payment and expenditure made for the production or  service that become part of the product like acquisition of raw materials and salaries/wages of the workers
• INDIRECT COST  -  sum of other expenses or cost generated from the business and also known as overhead expenses
• MATERIAL COST -  all materials needed both for direct manufacturing and  those needed for the functioning of the business
• STAFF COST   -  are salaries or wages plus additional costs as payments or incentive on overtime works, social security, annual and sick leaves of workers.
• DIRECT COST - item which becomes part of the products or services composing material cost, wages and benefits
• INDIRECT COST - items needed in running a business known as overhead expenses. These are the expenses on building, machines, maintenance, salaries, office costs, selling cost and financial cost.
• TR IS LESSER THAN TC - The production needs to stop.
• TR IS EQUAL TO TC - There is a need to maintain your production .
• TR IS GREATER THAN TC - You have to produce more.
• give 3 examples of direect cost direct labor, direct materials, manufacturing supplies
• give 3 examples of indirect cost rents, utilities, general office expenses