BUDGETS
Variable Costs: Variable costs are those costs that vary depending on a company's production volume, they rise as production increases and fall as production decreases. For instance, if you sell chicken, your variable costs would include the cost of the chicken from either a supermarket i.e. Tesco or the the local farmer, the condiments as well as the packaging.
Fixed Costs:
A cost that does not change with an increase or decrease in the amount of goods or services produced.They tend to be time-related, such as salaries or rents being paid per month, and are often referred to as overhead costs.
Beak even-point : The break even-point is where your company hasn't gained or lost profit. It is the point in buisness when the gross-profit that your company have set and it has been met.
Monitoring: In buisness, it is required to set a budget and monitor at least 2 times a month, This is nessesary to establish where extra costs can then be cut and ensure fixed-cost have not been breeched.
Beak even-point : The break even-point is where your company hasn't gained or lost profit. It is the point in buisness when the gross-profit that your company have set and it has been met.
Monitoring: In buisness, it is required to set a budget and monitor at least 2 times a month, This is nessesary to establish where extra costs can then be cut and ensure fixed-cost have not been breeched.
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