Please enable JavaScript.
Coggle requires JavaScript to display documents.
Cost - Coggle Diagram
Cost
Types of costs
variable cost
Cost which is related with the output of products produced
total variable cost
variable cost x output level
total cost
variable cost + fixed cost
fixed cost
Cost which is not related to the output of products produced
Total revenue
price unit x sale
avarage cost
The average cost of production is the cost of producing a single product
The formula of average cost is
total cost/ quantity produced
Cost graph
https://www.google.com/url?sa=i&url=https%3A%2F%2Fen.wikipedia.org%2Fwiki%2FVariable_cost&psig=AOvVaw3ZcAdfIuU5oIkJglGVTQu7&ust=1717233075377000&source=images&cd=vfe&opi=89978449&ved=0CBIQjRxqFwoTCLji0OzFt4YDFQAAAAAdAAAAABAI
Parts in a graph
Variable cost goes up as more units are produced
Total cost is the sum of both lines
Fixed cost is a horizontal line in the graph
Break even point
when the total revenue surpasses the total cost,
at this point the business starts to make profit
Total revenue goes up as more sales are done
https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.shopify.com%2Fblog%2Fbreak-even-analysis&psig=AOvVaw0E4E37MKU_JSV2pM0xStob&ust=1717233783506000&source=images&cd=vfe&opi=89978449&ved=0CBIQjRxqFwoTCPCps77It4YDFQAAAAAdAAAAABAE
Costs
The money a business spend in order to sustain itself and create products