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Business (Financial terms (Fixed Costs are costs that yo pay at the same…
Business
Financial terms
Fixed Costs are costs that yo pay at the same price no matter what and this can be really difficult if you don't do well as a business. An example of some fixed costs are:
Rent
Office salaries
Advertising (budget)
Insurance
Depreciation
You need to make sure that your fixed costs aren't too high so when your business does have a problem your not spending as much on fixed costs.
Variable costs are costs that are different each time you pay for something and examples of this would be:
Raw materials
Packaging costs
Royalties paid
This can be could and bad for a business because you could buy something really cheap sometimes or buy something really expensive sometimes and this can have a big affect on the business
Net Cash Flow is the difference between money coming into the business and money going out of the business
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