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Money Bag

Unit 3 - Finance & accounts

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Chart Increasing

Unit 1 - Introduction To Business Management

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Briefcase

Unit 2 - Human Resource Management

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Direct Hit

Unit 4 - Marketing

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Factory

Unit 5 - Operations management

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Bar-Chart

Unit 6 - Assessment

<ul>
	<li>Definition: Costs that don&#39;t change no matter how many products you make or don&rsquo;t make. Imagine paying rent for a shop. Even if the shop sells zero products in a month, the rent is still due! That&rsquo;s a fixed cost.</li>
	<li>Real-world example: Let&#39;s say you&#39;re a gamer. If you buy a gaming console, that&rsquo;s a one-time cost you incur regardless of how many games you play. It&rsquo;s the same with businesses &ndash; they have costs like rent and salaries that stay consistent.</li>
</ul>

<ul>
	<li>Definition: Costs that wiggle and jiggle based on how much a business produces. Make more, pay more! Make less, pay less!</li>
	<li>Real-world example: Every time you bake cookies, you buy ingredients. The more cookies you bake, the more chocolate chips you need, right? Variable costs work the same way - like paying for extra ingredients when the business bakes more cookies.</li>
</ul>

<ul>
	<li>Direct Costs: Expenses that you can point to and say, &quot;Hey! That cost is because of this product!&quot; Like the leather for a specific shoe design.</li>
	<li>Indirect Costs: A bit sneaky, these can&#39;t be pinned on a single product. Think of electricity for a factory &ndash; it benefits all the products made there!</li>
	<li>Real-world example: Direct Cost = Buying a specific guitar string for a guitar model. Indirect Cost = The electricity used in the music store.</li>
</ul>

<ul>
	<li>Definition: This is the money party! It&rsquo;s all the income a business gets from selling goods or services.</li>
	<li>Real-world example: If you sold 10 handmade bracelets for $5 each, your total revenue is $50! Cha-ching!</li>
</ul>

<ul>
	<li>Beyond Sales: Businesses don&rsquo;t just make money selling goods. They have other sneaky ways to fill up their piggy banks! This includes</li>
	<li>Rental Income: Like when a business rents out a part of its office space.
	<ul>
		<li>Sale of Fixed Assets: Sold an old company van? That&#39;s revenue!</li>
		<li>Dividends: Cash received from investments in other companies.</li>
		<li>Interest on Deposits: Money gained from savings or fixed deposits in banks.</li>
		<li>Donations, Grants, and Subsidies: Extra help from generous people or governments.</li>
	</ul>
	</li>
	<li>Real-world example: Think of your favorite YouTuber. Apart from ad revenue from their videos, they might rent out their studio, earn through merch sales, or get donations from fans!</li>
</ul>

<ul>
	<li>Definition: These are like magnifying glasses for big, messy data. They help make big information look neat, tidy, and simple.</li>
	<li>Real-world example: Ever seen a bar graph showing the most popular ice-cream flavors in your town? That&#39;s descriptive statistics at work!</li>
</ul>

💡 Remember, businesses have many costs and ways to earn money. Just like you might spend on video games but earn from babysitting or mowing lawns, businesses juggle their expenses and revenues to make a profit

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Happy studying! 🎓📚🎉

Unit 3 - Finance & accounts

Unlock Business Success: Master Fixed, Variable, & Total Costs

Table of content

Fixed costs 🚀

Variable costs 🛴

Total cost 🔥

Direct vs. indirect costs 🎯

Unlock the Full Content!

Unit 3 - Finance & accounts

Unlock Business Success: Master Fixed, Variable, & Total Costs

Table of content

Fixed costs 🚀

Variable costs 🛴

Total cost 🔥

Direct vs. indirect costs 🎯

Unlock the Full Content!