Fixed Costs - Costs that do not change with the level of output or sales. Examples: Rent, salaries, insurance, loan repayments., Variable Costs - Costs that change depending on the level of output or sales. Examples: Raw materials, packaging, wages of hourly workers., Startup Costs - One-time costs incurred when setting up a business before it starts operating. Examples: Equipment purchases, branding, website development, legal fees., Total Costs - The sum of fixed and variable costs. Formula: __________ = Fixed Costs + Variable Costs, Revenue (Turnover) - The total amount of money a business earns from sales. Formula: __________ = Price × Quantity Sold, Profit - The money a business makes after deducting all costs from revenue. Formula: __________ = Revenue - Total Costs, Break-even Point - The level of sales at which total revenue equals total costs, meaning the business makes neither a profit nor a loss. Formula: __________ = Fixed Costs ÷ Contribution per Unit, Contribution per Unit - The amount each sale contributes towards covering fixed costs and generating profit. Formula: __________ = Selling Price - Variable Cost per Unit, Cash Flow - The movement of money in and out of a business over a period of time., Gross Profit - Profit made before deducting fixed costs such as rent and wages. Formula: __________ = Revenue - Cost of Sales, Net Profit - The final profit after deducting all business costs, including fixed costs and taxes. Formula: __________ = Gross Profit - Fixed Costs, Cash Flow Forecast - A prediction of future cash inflows and outflows, used to ensure the business has enough liquidity., Margin of Safety - The amount by which actual sales exceed the break-even point, showing how much sales can fall before the business starts making a loss. Formula: __________ = Actual Sales - Break-even Sales, Retained Profit - Profit that is kept in the business rather than distributed to owners or shareholders, often reinvested for growth.,

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