A cost refers to the expenditure a business incurs while producing goods or services. Typical costs include payments for raw materials, wages, rent, and fuel.

Expenses that can be directly linked to the production of a specific product or service, such as raw materials and labour costs.

Economies of scale occur when a business's average cost per unit decreases as its production scale increases.

Fixed costs remain constant, regardless of production levels.

Expenses that are not directly tied to the production of a specific product but are necessary for the overall operation, such as utilities, office supplies, and administrative expenses.

Outsourcing involves hiring external firms to handle specific tasks or processes, allowing a business to focus on its core activities.

The total income generated by a business from its sales of goods or services before any costs are deducted. It is calculated as:

$$\text{Total Revenue} = \text{Price per Unit} \times \text{Quantity Sold}$$

The different sources through which a business earns income, such as product sales, subscriptions, licensing, and advertising.

The ongoing expenses required to operate a business, including salaries, rent, utilities, and maintenance.

The initial expenses incurred when starting a business, such as purchasing equipment, legal fees, and branding costs.

The sum of all expenses incurred in producing a good or service.

Variable costs change in proportion to the level of output.