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3.3 Costs & Revenues, VS Price: financial reward 4 providing product,…

- - - - Doesn't change if output or sale levels does
      - Unaffected for short-term, remain same:
      - Changes not linked to output level
      - Usually paid pm.
    - - Changes in proportion to quantity produced + units sold
      - Output increases = Variable Costs increases ** vice versa
  - - - Examples; Raw Material, Direct Labour Costs, Direct expenses, (Directly linked to production of specific product)
      - Mainly variable costs but some fixed
      - Costs directly identified & related to product
    - - Usually fixed costs, but there's exceptions
      - Features:
      - Not directly related to product
      - Examples: Rent, Interest payments, Admin. Cost, Managers salaries
      - Not easily traced to unit of product
      - Not directly identified / linked to product or a cost centre
  - - - Total VC change as quantity produced change
      - Total FC stay same when activity change
    - - VC per unit stays same
      - FC per unit falls as output rises